By Andrea Heisinger
New York, Nov. 29 - McKesson Corp. priced $900 million of notes (Baa2/A-/A-) in two tranches on Thursday, a market source said.
A $500 million tranche of 0.95% three-year notes sold at 99.897 to yield 0.985% with a spread of Treasuries plus 65 basis points. There is a make-whole call at Treasuries plus 10 bps.
The second part was $400 million of 2.7% 10-year notes priced at 99.886 to yield 2.713% with a spread of 110 bps over Treasuries. The tranche has a make-whole call at Treasuries plus 20 bps.
Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
There is a change-of-control put feature at 101%.
Proceeds will be used for general corporate purposes, including repayment of $500 million of 5.25% notes due March 1, 2013 and to replenish working capital used to repay $400 million of 7.75% notes maturing on Feb. 1, 2012.
McKesson was last in the bond market with a $1.7 billion sale in three tranches on Feb. 23, 2011. The offering included a 4.75% 10-year note sold at 130 bps over Treasuries.
The health care services and information technology provider is based in San Francisco.
| Issuer: | McKesson Corp.
|
| Issue: | Notes
|
| Amount: | $900 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Senior co-managers: | Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc.
|
| Co-managers: | Fifth Third Securities, Inc., PNC Capital Markets LLC, Rabo Securities USA Inc., Wells Fargo Securities LLC, HSBC Securities (USA) Inc., Lloyds Securities Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 4, 2015
|
| Coupon: | 0.95%
|
| Price: | 99.897
|
| Yield: | 0.985%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 15, 2022
|
| Coupon: | 2.7%
|
| Price: | 99.886
|
| Yield: | 2.713%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
