Davis Polk advised McKesson Corporation in connection with the offering of $1 billion aggregate principal amount of notes issued by Change Healthcare Holdings, LLC and Change Healthcare Finance, Inc., wholly owned subsidiaries of Change Healthcare LLC. The offering is expected to settle on February 15, 2017. The notes were sold in an offering exempt from registration pursuant to Rule 144A and Regulation S.

Change Healthcare LLC is a newly created healthcare information technology company, which will combine substantially all of Change Healthcare Holdings, Inc.’s business and the majority of McKesson Technology Solutions (MTS) into a new company. McKesson will own approximately 70% of the new company, with the remaining equity stake held by Change Healthcare stockholders, which includes Blackstone and Hellman & Friedman.

McKesson is a healthcare services and information technology company dedicated to making the business of healthcare run better. McKesson partners with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. Change Healthcare Holdings, Inc. is a leading provider of software and analytics, network solutions and technology-enabled services that optimize communications, payments and actionable insights designed to enable smarter healthcare.

The Davis Polk corporate team included partners Alan F. Denenberg and Joseph P. Hadley and associates Jason Bassetti, Eitan M. Goldberg and Jahnavi Pendharkar. The tax team included partner Neil Barr and associates Patrick E. Sigmon and Yoojin L. Kim. Members of the Davis Polk team are based in the Northern California and New York offices. 

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