McKesson 2009 Annual Report Download - page 102

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
96
Upon 30 days notice to holders of a Series, we may redeem that Series at any time prior to maturity, in whole or
in part, for cash at redemption prices that include accrued and unpaid interest and a make-whole premium, as
specified in the indenture and officers’ certificate relating to that Series. In the event of the occurrence of both (1) a
change of control of the Company and (2) a downgrade of a Series below an investment grade rating by each of
Fitch Ratings, Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services within a specified period, an
offer will be made to purchase that Series from the holders at a price in cash equal to 101% of the then outstanding
principal amount of that Series, plus accrued and unpaid interest to, but not including, the date of repurchase. The
indenture and the related officers’ certificate for each Series, subject to the exceptions and in compliance with the
conditions as applicable, specify that we may not incur liens, enter into sale and leaseback transactions or
consolidate, merge or sell all or substantially all of our assets. The indentures also contain customary events and
default provisions.
Accounts Receivable Sales Facility
In June 2008, we renewed our accounts receivable sales facility under substantially similar terms to those
previously in place, except that we increased the committed balance from $700 million to $1.0 billion. The renewed
facility expires in June 2009. We anticipate renewing this facility before its expiration.
Information regarding our outstanding balances related to our interests in accounts receivable sold or qualifying
receivables retained is as follows:
(In millions)
March 31,
2009
March 31,
2008
Receivables sold outstanding (1) $ - $ -
Receivables retained, net of allowance for doubtful accounts 4,814 4,251
(1) Deducted from receivables, net in the consolidated balance sheets.
The following table summarizes the activity related to our interests in accounts receivable sold:
Years Ended March 31,
(In millions) 2009 2008 2007
Proceeds from accounts receivable sales $ 5,780 $ 1,075 $ -
Fees and charges (1) (2) 10 2 -
(1) Recorded in operating expenses in the consolidated statements of operations.
(2) Fee charges related to the sale of receivables to the Conduits for 2007 were not material.
The delinquency ratio for the qualifying receivables represented less than 1% of the total qualifying receivables
as of March 31, 2009 and March 31, 2008.
Revolving Credit Facility
We have a $1.3 billion five-year, senior unsecured revolving credit facility which expires in June 2012.
Borrowings under this credit facility bear interest based upon either a Prime rate or the London Interbank Offering
Rate. Total borrowings under this facility were $279 million for 2009. There were no borrowings for 2008. As of
March 31, 2009 and 2008, there were no amounts outstanding under this facility.