DBRS Rates McKesson Corporation’s Note Offerings Totalling $4.1 Billion at BBB (high), Stable Trend

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

(1) $400 million, Three Month LIBOR +40 basis points floating rate notes maturing September 10, 2015
(2) $700 million, 1.292%, three-year notes maturing March 10, 2017
(3) $1.1 billion, 2.284%, five-year notes maturing March 15, 2019
(4) $1.1 billion, 3.796%, ten-year notes maturing March 15, 2024; and
(5) $800 million, 4.883% 30-year notes maturing March 15, 2044.

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 together with cash-on-hand and possible borrowings under the Company’s accounts receivable sales facility to repay borrowings outstanding under the Company’s bridge facility. Borrowings under the Company’s bridge facility were used to finance the acquisition of over 75% of the fully diluted shares outstanding of Celesio AG. (See press release dated March 5, 2014.)

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.