Wall Street banks line up $3.1bn debt financing for CD&R's Option Care deal
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 a report by Bloomberg citing people familiar with the transaction. The financing will reportedly comprise leveraged loans alongside secured and unsecured bonds, with the timing of the debt issuance yet…
Goldman Sachs, Bank of America, and Barclays are collaborating on a $3.1 billion debt financing package to support CD&R's acquisition of Option Care Health, according to Bloomberg. The financing will consist of leveraged loans, secured, and unsecured bonds, with the exact timing still to be determined. The acquisition, valued at approximately $5.8 billion, is anticipated to close in the first half of 2027, potentially moving into the following year.
CD&R will own a 51% stake, while McKesson will contribute around $1.4 billion for the remaining 49%. Option Care will be delisted from Nasdaq upon completion. This financing follows a period of reduced issuance activity, with US high-yield bond sales dropping 18% year-on-year to $14.6 billion in October, and leveraged loan issuance falling by over 10%.
Other transactions in the pipeline entail a $2.4 billion financing for CVC Capital Partners' acquisition of International Flavors & Fragrances' food ingredients business.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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