DBRS Rates McKesson $1.7 Billion Note Offerings at A (low), Stable Trend

DBRS has today assigned a rating of A (low) with a Stable trend to McKesson Corporation’s (McKesson or the Company) issue of the following senior unsecured notes (the Notes):

(1) $600 million, 3.25% five-year notes maturing March 1, 2016.
(2) $600 million, 4.75% ten-year notes maturing March 1, 2021.
(3) $500 million, 6.00% thirty-year notes maturing March 1, 2041.

The Notes will rank pari passu with McKesson’s other senior unsecured indebtedness. McKesson intends to use the proceeds from the sale of the Notes for general corporate purposes, including the repayment of borrowings outstanding under the Company’s bridge loan. McKesson recently acquired U.S. Oncology Holdings, Inc. (U.S. Oncology). On January 31, 2011, it borrowed $1.0 billion under a bridge loan to fund the redemption of certain indebtedness of U.S. Oncology and its wholly-owned subsidiary U.S. Oncology, Inc.

McKesson’s Notes issues and intended use of proceeds is consistent with DBRS’s expectations at the time of the Company’s most recent rating confirmation (January 21, 2011).

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Consumer Products, which can be found on our website under Methodologies.