DBRS Rates McKesson Corporation’s Note Offerings Totalling $900 Million 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) multi-tranche issuance of senior unsecured notes totalling $900 million (the Notes), consisting of:

(1) $500 million, 1.4% five-year notes maturing March 15, 2018; and
(2) $400 million, 2.85% ten-year notes maturing March 15, 2023.

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 to permanently finance the acquisition of PSS World Medical, Inc. (PSS), which included the repayment of PSS debt assumed in the transaction, which closed on February 22, 2013.

DBRS previously confirmed the ratings of McKesson on October 25, 2012 (see separate press release), following the announcement that the Company had entered into a definitive agreement under which McKesson would acquire all outstanding shares of PSS for a total purchase price of approximately $2.1 billion.

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

The applicable methodology is Rating Companies in the Merchandising Industry, which can be found on our website under Methodologies.