McKesson's Medical Unit Prices $2.25B Leveraged Loan Ahead of IPO

MCK moved its Medical-Surgical business a step closer to a public listing, with the unit pricing a $2.25 billion leveraged loan ahead of a planned IPO. The six-year term loan priced at 2.25 percentage points over the benchmark rate and was issued at 99.5 cents on the dollar, with JPMorgan leading the sale.

Proceeds will repay intercompany debt owed to McKesson and fund general corporate purposes, capitalizing the unit as a standalone entity. The financing follows an April agreement under which Apollo Global Management-managed funds would invest $1.25 billion in the business, implying an enterprise value of roughly $13 billion.

The separation, first announced in May 2025, leaves Medical-Surgical Solutions operationally and legally distinct ahead of its market debut . For MCK shareholders the spin frames a cleaner distribution-focused parent and potential buyback capacity, while the new debt load and minority ownership set the unit's standalone cost of capital. Separately, an executive vice president sold 123 shares under a pre-arranged Rule 10b5-1 plan .