Actionable news
All posts from Actionable news

Entry into a Material Definitive

On October22, 2015, McKesson Corporation (McKesson or the Company) entered into a Credit Agreement (the New Credit Facility) with Bank of America, N.A., as administrative agent, the lenders party thereto, Wells Fargo Bank, National Association, as Letters of Credit issuer, and Bank of America, N.A. (acting through its Canada branch), Citibank N.A. and Barclays Bank PLC, as swing line lenders. The New Credit Facility replaced the Companys existing $1.3 billion five-year senior unsecured revolving credit facility, dated as of September23, 2011 (the Existing Credit Facility), which was filed with the Securities and Exchange Commission on October25, 2011 as Exhibit 10.1 to McKessons Quarterly Report on Form 10-Q. There were no borrowings outstanding under the Existing Credit Facility at the time of its termination. By entering into the New Credit Facility and terminating certain of its other facilities including the Existing Credit Facility, its $1.35 billion accounts receivable facility as described below and its 500million five-year senior unsecured revolving credit facility, the Company aims to consolidate its global liquidity resources.

Under the New Credit Facility, which is scheduled to mature in October 2020, the Company has a revolving line of credit available of up to $3.5 billion and a $3.15 billion aggregate sublimit of availability in Canadian Dollars, British Pounds Sterling and Euros. The New Credit Facility requires that the Company maintain a debt to capital (excluding accumulated other comprehensive income or loss) ratio of no greater than 65%. The remaining terms and conditions of the New Credit Facility are substantially similar to those previously in place under the Existing Credit Facility.

Borrowings under the New Credit Facility bear interest based upon the London Interbank Offered Rate, Canadian Dealer Offered Rate for credit extensions denominated in Canadian Dollars, a prime rate...