Goldman Sachs, Bank of America and Barclays are preparing a $3.1bn debt financing package to support Clayton, Dubilier & Rice (CD&R) and McKesson’s acquisition of Option Care Health, according to Private Equity Wire. The report says the information was published as a Bloomberg report citing people familiar with the transaction, according to Private Equity Wire.
$3.1bn package includes loans and secured and unsecured bonds
The $3.1bn financing will reportedly comprise leveraged loans alongside secured and unsecured bonds, according to Private Equity Wire. The timing of the debt issuance has not been finalised, according to the same report.
The acquisition is expected to close in the first half of 2027, which the report notes could push the financing into next year.
Deal terms: $5.8bn enterprise valuation and split ownership
CD&R and McKesson agreed last month to acquire the US infusion services provider at an enterprise valuation of approximately $5.8bn, according to Private Equity Wire. Under the agreement, CD&R will hold a 51% stake, while McKesson will invest approximately $1.4bn for the remaining 49%, according to the report.
Option Care will be delisted from Nasdaq following completion, according to Private Equity Wire.
Debt markets context cited in the report
The financing is being prepared as banks begin testing investor appetite for acquisition-related debt amid subdued issuance activity, according to Private Equity Wire. The report says US high-yield bond sales fell 18% year-on-year to $14.6bn in October, while leveraged loan issuance declined by more than 10%.
The report also lists other transactions in the pipeline, including a $2.4bn financing for CVC Capital Partners’ acquisition of International Flavors & Fragrances’ food ingredients business.
