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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
85
14. Debt and Financing Activities
Information regarding long-term debt is as follows:
March 31,
(In millions) 2014 2013
Denominated in U.S. Dollars
6.50% Notes due February 15, 2014 $ — $ 350
Floating Rate Notes due September 10, 2015 400 —
0.95% Notes due December 4, 2015 499 499
3.25% Notes due March 1, 2016 599 599
5.70% Notes due March 1, 2017 500 500
1.29% Notes due March 10, 2017 700 —
1.40% Notes due March 15, 2018 499 499
7.50% Notes due February 15, 2019 349 349
2.28% Notes due March 15, 2019 1,100 —
4.75% Notes due March 1, 2021 598 598
2.70% Notes due December 15, 2022 400 400
2.85% Notes due March 15, 2023 400 400
3.80% Notes due March 15, 2024 1,100 —
7.65% Debentures due March 1, 2027 175 175
6.00% Notes due March 1, 2041 493 493
4.88% Notes due March 15, 2044 800 —
Other 27 11
Denominated in Euro and other foreign currencies
4.00% Bonds due October 18, 2016 507 —
4.50% Bonds due April 26, 2017 737 —
Promissory Notes 297 —
Bank liabilities and other 193 —
Total debt 10,373 4,873
Less current portion (1,424)(352)
Total long-term debt $ 8,949 $ 4,521
Senior Bridge Term Loan Facilities
In connection with our acquisition of Celesio, in January 2014, we entered into a $5.5 billion 364 unsecured Senior
Bridge Term Loan Agreement (the “2014 Bridge Loan”) under terms substantially similar to those in our existing revolving credit
facility. On February 4, 2014, we borrowed $4,957 million under this facility, with such proceeds and cash on hand used to fund
the acquisition of Celesio. On March 10, 2014, we repaid $4,076 million of the 2014 Bridge Loan borrowings with funds obtained
from the issuance of long-term debt. On March 11, 2014, we repaid the remaining balance of the 2014 Bridge Loan borrowings
using funds drawn on our Accounts Receivable Sales Facility and cash on hand. On April 30, 2014, the commitments under the
2014 Bridge Loan automatically terminated upon the settlement of the tender offers for the remaining common shares of Celesio.
During the time it was outstanding, the 2014 Bridge Loan borrowings bore interest at 1.39% per annum, based on the London
Interbank Offered Rate plus a margin based on the Company’s credit rating. Interest expense for 2014 included a total of $46 million
of fees related to the 2014 Bridge Loan and a bridge loan agreement entered into during the third quarter of 2014 in anticipation
of an earlier acquisition of Celesio.