McKesson Subsidiary Secures $2.25B Term Loan Facility
McKesson Corporation announced that its subsidiary, McKesson Medical-Surgical Top Holdings, Inc., entered into an amendment to its Credit Agreement to establish a $2,250.0 million senior secured term "B" loan facility due 2032. The new facility will bear interest at either the Adjusted Term SOFR Rate plus 2.25% or the Base Rate plus 1.25%, with the company initially selecting the SOFR-based rate. The obligations are secured by substantially all assets of the borrower and its material U.S. subsidiaries, and the borrower will adhere to financial covenants related to leverage and interest coverage.
Key Highlights
- McKesson subsidiary entered into an amendment to its Credit Agreement.
- The amendment provides for a $2,250.0 million senior secured term "B" loan facility due 2032.
- Borrowings will bear interest at Adjusted Term SOFR Rate plus 2.25% or Base Rate plus 1.25%.
- The Borrower selected an initial interest rate of Adjusted Term SOFR Rate plus 2.25%.
- Obligations are secured by substantially all tangible and intangible assets of the Borrower and certain U.S. subsidiaries.
- The Borrower will be subject to financial covenants including maximum total net leverage ratio and minimum interest coverage ratio.
Price Impact
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