McKesson offers to purchase up to $500 million debt from seven series

Chicago, July 8 – McKesson Corp. has started a cash offer to purchase up to $500 million of its notes from seven series, according to a press release on Thursday.

The company is offering to buy from the following series, listed in acceptance priority order:

• $286,078,000 outstanding 6% notes due 2041 (Cusip: 58155QAE3) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 120 basis points;

• $411,425,000 outstanding 4.883% notes due 2044 (Cusip: 581557BC8) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 112 bps;

• $166,596,000 outstanding 7.65% debentures due 2027 (Cusip: 581557AM7) with pricing to be based on the 0.875% U.S. Treasury due June 30, 2026 plus 75 bps;

• $400 million outstanding 4.75% notes due 2029 (Cusip: 581557BN4) with pricing to be based on the 1.625% U.S. Treasury due May 15, 2031 plus 40 bps;

• $600 million outstanding 3.95% notes due 2028 (Cusip: 581557BJ3) with pricing to be based on the 1.625% U.S. Treasury due May 15, 2031 plus 10 bps;

• $400 million outstanding 2.85% notes due 2023 (Cusip: 58155QAG8) with pricing to be based on the 0.125% U.S. Treasury due June 30, 2023 plus 30 bps; and

• $1.1 billion outstanding 3.796% notes due 2024 (Cusip: 581557BE4) with pricing to be based on the 0.25% U.S. Treasury due June 15, 2024 plus 20 bps.

An early tender consideration of $50 per $1,000 note will be paid to noteholders who tender by the early expiration time of 5 p.m. ET on July 21, also the withdrawal deadline.

The offer will expire at 11:59 p.m. ET on Aug. 4.

Noteholders will also be paid interest to the settlement date.

If the tender cap is reached, tenders may be subject to proration.

Barclays (212 528-7581, 800 438-3242) and Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) are the lead dealer managers for the offer.

Wells Fargo Securities, LLC is the co-dealer manager.

Global Bondholder Securities Corp. (866 924-2200, contact@gbsc-usa.com) is the tender agent and information agent.

McKesson is a San Francisco-based health care services and information technology company.

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