McKesson gives pricing, early tender results for seven series of notes, ups cap to $922.15 million

By Wendy Van Sickle

Columbus, Ohio, July 22 – McKesson Corp. announced the early results and pricing of its capped tender offer for seven series of notes as well as an increase in the cap to $922,154,000 from $500 million, according to a press release on Thursday.

The increased cap reflects the exact amount of tenders received by the 5 p.m. ET early deadline on July 21.

Tender results

The company received and accepted the following amounts of tenders for the seven series in the offer, with prices listed per $1,000 principal amount:

• $66,483,000, or 23.2%, of the $286,078,000 outstanding 6% notes due 2041 (Cusip: 58155QAE3) for $1,425.81, based on the 2.25% U.S. Treasury due May 15, 2041 plus 120 basis points;

• $156,583,000, or 38.1%, of the $411,425,000 outstanding 4.883% notes due 2044 (Cusip: 581557BC8) for $1,309.93, based on the 2.25% U.S. Treasury due May 15, 2041 plus 112 bps;

• $16,788,000, or 10.1%, of the $166,596,000 outstanding 7.65% debentures due 2027 (Cusip: 581557AM7) for $1,331.47, based on the 0.875% U.S. Treasury due June 30, 2026 plus 75 bps;

• $203,616,000, or 50.9%, of the $400 million outstanding 4.75% notes due 2029 (Cusip: 581557BN4) for $1,218.67, based on the 1.625% U.S. Treasury due May 15, 2031 plus 40 bps;

• $256,749,000, or 42.8%, of the $600 million outstanding 3.95% notes due 2028 (Cusip: 581557BJ3) for $1,155.35, based on the 1.625% U.S. Treasury due May 15, 2031 plus 10 bps;

• $40,005,000, or 10%, of the $400 million outstanding 2.85% notes due 2023 (Cusip: 58155QAG8) for $1,032.56, based on the 0.125% U.S. Treasury due June 30, 2023 plus 30 bps; and

• $181.93 million, or 16.5%, of the $1.1 billion outstanding 3.796% notes due 2024 (Cusip: 581557BE4) for $1,076.89, 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 that will be paid to noteholders who tendered by the early expiration time is reflected in the prices listed above.

Pricing was determined at 10 a.m. ET on July 22.

Noteholders will also be paid interest to the settlement date.

Details

The offer will technically expire at 11:59 p.m. ET on Aug. 4. However, no notes tendered after the early deadline will be accepted for purchase.

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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