Published on 8/10/2021 in the Prospect News Investment Grade Daily.
New Issue: McKesson prices $500 million 1.3% five-year notes at 60 bps spread
By Cristal Cody
New York, Aug. 10 – McKesson Corp. priced $500 million of 1.3% five-year notes (Baa2/BBB+/BBB+) at a spread of Treasuries plus 60 basis points on Monday, according to an FWP filing with the Securities and Exchange Commission and details from a market source.
The notes priced at 99.547 to yield 1.394%.
A market source had seen the notes talked with a spread in the Treasuries plus 75 bps area.
The notes have a make-whole call at Treasuries plus 10 bps until July 15, 2026 when the notes are callable at par.
Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for working capital and general corporate purposes.
McKesson is an Irving, Tex.-based health care services and information technology company.
| Issuer: | McKesson Corp.
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| Issue: | Notes
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| Amount: | $500 million
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| Maturity: | Aug. 15, 2026
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| Bookrunners: | Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | BofA Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC
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| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, UniCredit Capital Markets LLC, U.S. Bancorp Investments, Inc., ING Financial Markets LLC, MUFG, NatWest Markets Securities Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Wells Fargo Bank, NA
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| Counsel to issuer: | Morrison & Foerster LLP
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| Coupon: | 1.3%
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| Price: | 99.547
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| Yield: | 1.394%
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| Spread: | 60 bps over Treasuries
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| Call features: | Make-whole at Treasuries plus 10 bps and par call starting July 15, 2026
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| Pricing date: | Aug. 9
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| Settlement date: | Aug. 12
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Cusip: | 581557BR5
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| Price talk: | Treasuries plus 75 bps area
|
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