MCK · McKesson Corporation

McKesson Corporation has executed a comprehensive refinancing of its credit facilities, establishing a new $5.0 billion senior unsecured revolving credit facility dated April 24, 2026. This strategic move consolidates the company's liquidity infrastructure by replacing two existing agreements: the $1.0 billion 364-day facility (scheduled to mature in May 2026) and the $4.0 billion five-year facility (scheduled to mature in November 2029). The new facility extends the company's debt maturity profile by five years to April 2031 while maintaining the aggregate available capacity of $5.0 billion. The facility enhances financial flexibility with a $4.5 billion sublimit for multi-currency borrowings (Canadian Dollars, British Pound Sterling, and Euros), slightly increasing the previous $3.6 billion foreign currency sublimit. The agreement introduces a financial covenant requiring a Total Debt to Consolidated EBITDA ratio not to exceed 4.25x, with a temporary step-up provision to 4.75x following material acquisitions exceeding $500 million in cash consideration. Notably, the covenant calculation explicitly excludes the Medical-Surgical Solutions segment, indicating a potential strategic focus or separation consideration for this business unit. The pricing structure remains favorable, utilizing a ratings-based grid with margins ranging from 0% to 0.25% for base rate loans and 0.625% to 1.25% for SOFR and alternative currency loans. Bank of America, N.A. serves as the administrative agent, with a syndicate including JPMorgan Chase Bank, Wells Fargo Bank, Barclays Bank PLC, Citibank, and Goldman Sachs Bank USA acting in various agent and arranger capacities.