Key Takeaways
- • Goldman Sachs, Bank of America and Barclays have been tapped to lead a $3.1 billion financing for the acquisition of Option Care Health by Clayton, Dubilier & Rice and McKesson Corp., according to people with knowledge of the matter.
- • The financing package is structured in three parts: leveraged loans, secured bonds and unsecured bonds.
- • The deal is being pursued jointly by private equity firm Clayton, Dubilier & Rice and McKesson Corp., which is the healthcare distributor partner in the transaction.
- • The discussions are private and the sources asked not to be identified, so terms may still change before execution.
Summary
A group of Wall Street banks has been selected to lead a $3.1 billion debt financing supporting the acquisition of Option Care Health by private equity firm Clayton, Dubilier & Rice (CD&R) and McKesson Corp., according to people with knowledge of the matter, as reported by Bloomberg.
The financing will be arranged as a three-part package comprising leveraged loans, secured bonds and unsecured bonds. Goldman Sachs Group Inc., Bank of America Corp. and Barclays Plc are leading the transaction, the sources said. The sources asked not to be identified because the discussions are private, and the report did not disclose pricing, timing or the final syndication structure.
The mandate reflects the scale of leveraged finance required for a transaction of this size, with the debt package making up the bulk of the acquisition funding alongside the equity contributions of the buyers. Institutional lenders and bond investors will be the primary counterparties for the offering once it is marketed. The report did not specify the purchase price for Option Care Health or the final allocation between CD&R and McKesson.
The financing will be arranged as a three-part package comprising leveraged loans, secured bonds and unsecured bonds. Goldman Sachs Group Inc., Bank of America Corp. and Barclays Plc are leading the transaction, the sources said. The sources asked not to be identified because the discussions are private, and the report did not disclose pricing, timing or the final syndication structure.
The mandate reflects the scale of leveraged finance required for a transaction of this size, with the debt package making up the bulk of the acquisition funding alongside the equity contributions of the buyers. Institutional lenders and bond investors will be the primary counterparties for the offering once it is marketed. The report did not specify the purchase price for Option Care Health or the final allocation between CD&R and McKesson.
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