McKesson secures $2 billion credit facilities with JPMorgan

McKesson Corporation (NYSE: MCK) subsidiaries entered into a credit agreement on April 1, 2026, establishing $2 billion in senior secured credit facilities with JPMorgan Chase Bank serving as administrative agent.

The financing package includes a $750 million term loan facility due 2031, a $250 million term loan facility due 2028, and a $1 billion revolving credit facility maturing April 1, 2031. McKesson Medical-Surgical Top Holdings serves as the borrower under the agreement.

Interest rates on the term loan facilities equal either the Adjusted Term SOFR Rate plus 1.250% annually or the Base Rate plus 0.250% annually, with the borrower selecting the initial SOFR-based rate. The revolving credit facility carries similar initial rates, with future rates varying between 1.625% to 1.250% plus the Term Benchmark Rate based on leverage ratios and credit ratings.

The borrower must pay commitment fees ranging from 0.225% to 0.175%, depending on leverage ratios and credit ratings. All obligations are secured by substantially all tangible and intangible assets of the borrower and certain material U.S. subsidiaries.

The credit agreement includes standard representations, warranties, and covenants restricting indebtedness, liens, investments, and distributions. Financial maintenance covenants require maintaining maximum leverage ratios and minimum interest coverage ratios, tested quarterly.

The agreement also contains customary events of default provisions. JPMorgan Chase Bank acts as both administrative agent and collateral agent for the facilities.

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