By Andrea Heisinger
New York, Feb. 9 - McKesson Corp. priced $700 million of notes (Baa3/BBB+/BBB+) in two tranches Monday, market sources said.
The $350 million of 6.5% five-year notes priced at 99.936 to yield 6.515%, or Treasuries plus 450 basis points.
The $350 million of 7.5% 10-year notes priced at 99.659 to yield 7.549%, or Treasuries plus 450 bps.
Both tranches have a make-whole call of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC and J.P. Morgan Securities Inc.
Co-managers were Mitsubishi UFJ Securities, Scotia Capital, Goldman Sachs & Co., KeyBanc Capital Markets Inc., Rabo Securities, SunTrust Robinson Humphrey Inc. and Wachovia Capital Markets LLC.
Proceeds will be used for general corporate purposes.
The health care services and information technology company is based in San Francisco.
| Issuer: | McKesson Corp.
|
| Issue: | Notes
|
| Total amount: | $700 million
|
| Bookrunners: | Banc of America Securities LLC, J.P. Morgan Securities Inc.
|
| Co-managers: | Mitsubishi UFJ Securities, Scotia Capital, Goldman Sachs & Co., KeyBanc Capital Markets Inc., Rabo Securities, SunTrust Robinson Humphrey Inc., Wachovia Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2014
|
| Coupon: | 6.5%
|
| Price: | 99.936
|
| Yield: | 6.515%
|
| Spread: | Treasuries plus 450 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2019
|
| Coupon: | 7.5%
|
| Price: | 99.659
|
| Yield: | 7.549%
|
| Spread: | Treasuries plus 450 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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