| Free Writing Prospectus Filed Pursuant to Rule 433 Registration No. 333-179879 |
Pricing Term Sheet
McKesson Corporation
Floating Rate Notes due 2015
1.292% Notes due 2017
2.284% Notes due 2019
3.796% Notes due 2024
4.883% Notes due 2044
| Issuer: | McKesson Corporation | |||||||||
| Title: | Floating Rate Notes due 2015 | 1.292% Notes due 2017 |
2.284% Notes due 2019 |
3.796% Notes due 2024 |
4.883% Notes due 2044 | |||||
| Size: | $400,000,000 | $700,000,000 | $1,100,000,000 | $1,100,000,000 | $800,000,000 | |||||
| Maturity: | September 10, 2015 | March 10, 2017 |
March 15, 2019 |
March 15, 2024 |
March 15, 2044 | |||||
| Interest Payment Dates: | March 10, June 10, September 10 and December 10, commencing June 10, 2014 | March 10 and September 10, commencing September 10, 2014 |
March 15 and September 15, commencing September 15, 2014 |
March 15 and September 15, commencing September 15, 2014 |
March 15 and September 15, commencing September 15, 2014 | |||||
| Spread to LIBOR: | +40 bps | |||||||||
| Designated LIBOR page: |
Bloomberg L.P. BBAM Page | |||||||||
| Index Maturity: | 3 Month LIBOR | |||||||||
| Interest Reset Dates: | March 10, June 10, September 10 and December 10 | |||||||||
| Initial Interest Rate: | 3 month LIBOR plus 0.40% determined on the second London business day prior to March 10, 2014 | |||||||||
| Coupon: | — | 1.292% | 2.284% | 3.796% | 4.883% | |||||
| Benchmark Treasury: | — | UST 0.625% due 2/15/2017 |
UST 1.50% due 2/28/2019 |
UST 2.75% due 2/15/2024 |
UST 3.75% due 11/15/2043 | |||||
| Treasury Yield: | — | 0.692% | 1.534% | 2.696% | 3.633% | |||||
| Spread to Benchmark Treasury: |
— | +60 bps | +75 bps | +110 bps | +125 bps | |||||
| Yield to Maturity: | — | 1.292% | 2.284% | 3.796% | 4.883% | |||||
| Price to Public: | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
| Redemption: |
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| Make Whole: | — | Treasury Rate +10 bps |
Treasury Rate +15 bps |
Treasury Rate +20 bps |
Treasury Rate +20 bps | |||||
| Par Call: | — | not applicable | not applicable | Beginning December 15, 2023, at par |
Beginning September 15, 2043, at par | |||||
| CUSIP: | 581557 BA2 | 581557 BB0 | 581557 BD6 | 581557 BE4 | 581557 BC8 | |||||
| ISIN: | US581557BA29 | US581557BB02 | US581557BD67 | US581557BE41 | US581557BC84 | |||||
| Trade Date: | March 5, 2014 | |||||||||
| Settlement Date: | March 10, 2014 (T+3) | |||||||||
| Pro Forma Ratio of Earnings to Fixed Charges: |
The Issuer’s pro forma ratio of earnings to fixed charges, after giving effect to this offering, would have been 5.5x for the nine months ended December 31, 2013 and 5.1x for the year ended March 31, 2013. | |||||||||
| Bookrunners: | Goldman, Sachs and Co. Merrill Lynch, Pierce, Fenner & Smith Incorporated |
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| Senior Co-Managers: | Mitsubishi UFJ Securities (USA), Inc. Scotia Capital (USA) Inc. Wells Fargo Securities, LLC |
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| Co-Managers: | Fifth Third Securities, Inc. PNC Capital Markets LLC Rabo Securities USA, Inc. HSBC Securities (USA) Inc. Lloyds Securities Inc. TD Securities (USA) LLC U.S. Bancorp Investments, Inc. |
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The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Goldman, Sachs & Co. toll-free at 1-866-471-2526 or Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-294-1322.
This pricing term sheet supplements the preliminary prospectus supplement dated March 5, 2014 and prospectus dated March 2, 2012.