MCKESSON CORP 8-K

What Happened

• McKesson Corporation announced on April 24, 2026 that it entered into a new Credit Agreement for a $5.0 billion revolving credit facility (the "New Revolving Credit Facility"), with Bank of America, N.A. as administrative agent. The agreement was disclosed on an 8‑K filed April 28, 2026.
• The new facility replaces McKesson’s prior $1.0 billion 364‑day facility (maturing May 2026) and $4.0 billion five‑year facility (maturing November 2029). There were no outstanding borrowings under the prior facilities when they were terminated.

Key Details

• Size & maturity: $5.0 billion committed revolver, scheduled to mature in April 2031; $4.5 billion aggregate sublimit for borrowings in CAD, GBP and EUR.
• Financial covenant: maximum total debt to Consolidated EBITDA of 4.25x (temporary step‑up to 4.75x permitted after an acquisition with at least $500 million cash consideration). Indebtedness and EBITDA of the Medical‑Surgical Solutions (MMS) segment are excluded from this ratio.
• Pricing: borrower’s option of base rate, Term SOFR or applicable foreign rate; margins tied to McKesson’s ratings (base rate margin 0%–0.25%; SOFR/foreign rate margin 0.625%–1.25%).
• Other: lenders may accelerate payment on an event of default. The facility’s other terms are substantially similar to the prior five‑year facility.

Why It Matters

• Liquidity & tenor: The new $5.0B revolver extends McKesson’s committed liquidity runway through 2031, replacing short‑dated and prior revolving facilities and preserving borrowing capacity for working capital, acquisitions or other needs.
• Leverage control: The covenant limits leverage (total debt/EBITDA) to 4.25x, with a limited temporary allowance for sizable acquisitions—important for investors monitoring leverage and acquisition flexibility.
• Cost and currency flexibility: Borrowing costs will vary with market rates and McKesson’s credit ratings, and the sizable foreign‑currency sublimit supports international cash needs. Overall, this is a financing and liquidity update rather than an operational change.