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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
78
10. Long-Term Debt and Other Financing
March 31,
(In millions) 2008 2007
6.40% Notes due March, 2008 $ - $ 150
9.13% Series C Senior Notes due February, 2010 215 215
7.75% Notes due February, 2012 399 399
5.25% Notes due March, 2013 498 498
5.70% Notes due March, 2017 499 499
7.65% Debentures due March, 2027 175 175
ESOP related debt (see Financial Note 13) 4 14
Other 78
Total debt 1,797 1,958
Less current portion 2 155
Total long-term debt $ 1,795 $ 1,803
In June 2007, we renewed our $700 million committed accounts receivable sales facility. The facility was
renewed under substantially similar terms to those previously in place. The renewed facility expires in June 2008.
As of March 31, 2008 and 2007, no amounts were outstanding under the accounts receivable facility.
In June 2007, we renewed our existing $1.3 billion five-year, senior unsecured revolving credit facility, which
was scheduled to expire in September 2009. The new credit facility has terms and conditions substantially similar to
those previously in place and expires in June 2012. Borrowings under this new credit facility bear interest based
upon either a Prime rate or the London Interbank Offering Rate (“LIBOR”). As of March 31, 2008 and 2007, no
amounts were outstanding under this facility.
In January 2007, we entered into a $1.8 billion interim credit facility. The interim credit facility was a single-
draw 364-day unsecured facility with terms substantially similar to those contained in the Company’ s existing
revolving credit facility. We utilized $1.0 billion of this facility to fund a portion of our purchase of Per-Se. On
March 5, 2007, we issued $500 million of 5.25% notes due 2013 and $500 million of 5.70% notes due 2017. The
notes are unsecured and interest is paid semi-annually on March 1 and September 1. The notes are redeemable at
any time, in whole or in part, at our option. In addition, upon occurrence of both a change of control and a ratings
downgrade of the notes to non-investment-grade levels, we are required to make an offer to redeem the notes at a
price equal to 101% of the principal amount plus accrued interest. We utilized net proceeds, after offering expenses,
of $990 million from the issuance of the notes, together with cash on hand, to repay all amounts outstanding under
the interim credit facility plus accrued interest.
In 2008, 2007 and 2006, we sold customer lease portfolio receivables for cash proceeds of $16 million, $5
million and $60 million. Gains on sales of these receivables were not material.
The employee stock ownership program (“ESOP”) debt bears interest at rates ranging from 8.6% fixed rate to
approximately 93% of the LIBOR and is due in semi-annual and annual installments through 2010.