McKesson 2015 Annual Report Download - page 100

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
Loan commitment to $900 million. On February 22, 2013, we borrowed $900 million under the 2013 Bridge
Loan with such proceeds and cash on hand used to redeem the assumed debt from PSSI and pay the equity
shareholders of PSSI. On March 8, 2013, we repaid the 2013 Bridge Loan borrowings with funds obtained from
the issuance of long-term debt and the bridge loan agreement was subsequently terminated. During the time it
was outstanding, the 2013 Bridge Loan borrowings bore interest at 1.20% per annum, based on the London
Interbank Offered Rate plus a margin based on the Company’s credit rating. Interest expense for 2013 included
$11 million of fees related to the 2013 Bridge Loan.
Accounts Receivable Facilities
In November 2014, we extended our existing Accounts Receivable Sales Facility (the “Facility”) for a
two-year period under terms substantially similar to those previously in place. The committed balance of the
Facility is $1.35 billion, although from time-to-time, the available amount of the Facility may be less than
$1.35 billion based on accounts receivable concentration limits and other eligibility requirements. The Facility
will expire in November 2016.
In 2015, 2014 and 2013, we borrowed nil, $550 million and $1,325 million under the Facility and we repaid
nil, $550 million and $1,725 million. At March 31, 2015 and 2014, there were no secured borrowings and related
securitized accounts receivable outstanding under the Facility.
The Facility contains requirements relating to the performance of the accounts receivable and covenants
relating to the Company. If we do not comply with these covenants, our ability to use the Facility may be
suspended and repayment of any outstanding balances under the Facility may be required. At March 31, 2015
and 2014, we were in compliance with all financial covenants.
We also have Accounts Receivable Factoring Facilities (the “Factoring Facilities”) denominated in foreign
currencies with a total committed balance of $169 million. Transactions under these facilities are accounted for
as secured borrowings and have interest rates ranging from 0.85% to 1.26%. These facilities will expire through
January 2016 and we may renew certain facilities before their expiration. During the 2015 and 2014, we
borrowed $2,875 million and $570 million and repaid $2,908 million and $575 million in short-term borrowings
under these facilities. At March 31, 2015 and 2014, there were $135 million and $246 million in secured
borrowings and related accounts receivable outstanding under these facilities, which are included in short-term
borrowings and receivables in our consolidated balance sheet.
Revolving Credit Facilities and Lines of Credit
We have a syndicated $1.3 billion five-year senior unsecured revolving credit facility, which expires in
September 2016. Borrowings under this credit facility bear interest based upon either the London Interbank
Offered Rate or a prime rate. There were no borrowings under this credit facility during 2015, 2014 and 2013. As
of March 31, 2015 and 2014, there were no borrowings outstanding under this credit facility.
We also have a syndicated €500 million five-year senior unsecured revolving credit facility, which expires
in February 2018. Borrowings under this facility bear interest based upon the Euro Interbank Offered Rate plus
an agreed margin. During 2015 and 2014, there were no borrowings under this facility and no amounts
outstanding as of March 31, 2015 and 2014.
We also maintain bilateral credit lines primarily denominated in Euros with a total committed and
uncommitted balance of $1.4 billion. These credit lines have interest rates ranging from 0.20% to 6.00% with
95