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McKesson says it took out $2B bridge loan

Mon, 11/29/2010 - 1:45pm
The Associated Press

Medical supplies distributor McKesson Corp. said Monday it took out a $2 billion bridge loan to complete its purchase of US Oncology.

McKesson said it will use the one-year loan to pay for the $560 million merger, pay back some of US Oncology's debt, and cover the transaction costs connected with the deal. It said it took out the loan on Tuesday. The administrative agent on the loan is Bank of America Corp.

US Oncology provides drugs and services to 500 cancer centers around the U.S. McKesson agreed to buy the company on Nov. 1, and said it would assume $1.6 billion in debt held by US Oncology. It plans to repay or refinance that debt.

Shares of McKesson fell 7 cents to $64.26 on Monday.

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