Regions

McKesson obtains bridge loan

Close
October 25
7:51 PM 2013

The largest pharmaceutical distributor in the United States, McKesson Corp, had recently obtained a USD5.5 billion bridge loan in order to provide funding for its acquisition of Celesio AG of Germany.

The bridge loan is being arranged by Bank of America Corp and Goldman Sachs Group and has a term of 364 days according to regulatory documentation filed by the San Francisco based firm. The filing had also indicated that the terms of the bridge loan includes a provision of a debt-to-capital ratio of no more than 65%. 

Earlier, an agreement was forged between McKession and Celesio for the purchase of 50.01% shareholding in Celesio by McKesson from Franz Haniel & Cie GmbH. This is equivalent to EUR3.9 billion or USD5.4 billion as the company seeks to expand its market share in the expanding generic drug industry. The transaction would include a debt pile from Celesio worth USD8.3 billion.

The proceeds of the bridge loan would pay for the acquisition cost and other attendant fees. Currently, McKesson has a debt portfolio worth USD4.88 billion, according to Bloomberg compiled data.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics