RLPC: McKesson inks $5.5B bridge via BAML, GS
NEW YORK Oct 25 (Reuters) - Bank of America Merrill Lynch and Goldman Sachs are leading the $5.5 billion bridge loan for McKesson Corp's $8.3 billion acquisition of German peer Celesio, sources told Thomson Reuters LPC Friday.
The 364-day unsecured senior loan backs the proposed takeover that the U.S.-based drug manufacturer announced on Thursday.
McKesson expects to refinance all or part of the outstanding amounts under the bridge loan agreement with longer-term financing prior to the maturity of the loan, as per an SEC filing.
According to Thomson Reuters LPC data, the company has in place a $2.1 billion revolver it entered in December 2012. The revolver pays LIB+100 if drawn and 10bp if it remains undrawn. Bank of America Merrill Lynch is also lead arranger of the existing financing.
San Francisco-based McKesson agreed to buy Celesio on Thursday for $8.3 billion, including debt. The company, which is the largest drugs wholesale group in the United States, plans to purchase the 50.01 percent stake in Celesio owned by Franz Haniel & Cie for 23 euros ($31.7) a share.