PROSPECTUS SUPPLEMENT
(To Prospectus dated June 18, 1997)
4,000,000 Trust Convertible Preferred Securities
McKesson Financing Trust
5% Trust Convertible Preferred Securities
(Liquidation Amount $50 per Convertible Preferred Security)
Guaranteed to the Extent Set Forth Herein by,
McKesson HBO, Inc.
This prospectus supplement supplements and amends the prospectus
dated June 18, 1997, relating to the 5% Trust Convertible Preferred
Securities of McKesson Financing Trust, a statutory business trust formed
under the laws of the State of Delaware and a subsidiary of McKesson HBOC,
Inc. ("McKessonHBOC"). The Convertible Preferred Securities represent
preferred undivided beneficial interests in the assets of McKesson
Financing Trust and the shares of McKessonHBOC common stock, par value $.01
per share, issuable upon conversion of the Convertible Preferred
Securities.
On January 12, 1999, McKesson Corporation and HBO & Company ("HBOC"),
a leading healthcare information company, consummated their previously
announced merger transaction. McKessonHBOC began operations on January 13,
1999, at its corporate headquarters located in San Francisco, California.
Common shares of McKessonHBOC continue to trade on the New York Stock
Exchange under the symbol "MCK." The merger of the two companies will be
accounted for as a pooling of interests. McKessonHBOC has a fiscal year end
of March 31. The quarter ending March 31, 1999, will be McKessonHBOC's
first quarter of combined financial results and will include a charge for
merger-related costs. For the quarter ended December 31, 1998, McKessonHBOC
reported separate financial results for McKesson Corporation and HBOC,
respectively, on January 25, 1999.
Charles W. McCall, formerly president and chief executive officer of
HBOC, has become chairman of McKessonHBOC's board of directors, and Mark A.
Pulido, formerly president and chief executive officer of McKesson
Corporation, has become president and chief executive officer of
McKessonHBOC. McKessonHBOC's board of directors consists of twelve members,
which includes six members from the former McKesson Corporation board and
six members from the former HBOC board.
The table on pages 56 through 58 of the Prospectus, which sets forth
information with respect to the Selling Holders (as defined in the
Prospectus) and the respective amounts of Convertible Preferred Securities
beneficially owned by each Selling Holder that may be offered pursuant to
the Prospectus (as supplemented and amended), is hereby amended by the
deletion of item 91 of that table and the substitution therefor of item 91
below:
<TABLE>
<CAPTION>
Convertible Convertible Preferred
Preferred Number of Securities Owned
Securities Owned Convertible Preferred After Offering
"Selling Holder Prior to Offering Securities Offered ----------------------
- --------------- ----------------- ---------------------
Number Percent Number Percent
------- ------- ------ -------
<S> <C> <C> <C> <C> <C>
91. SoundShore Holdings 124,705 3.12% 13,225 111,480 2.79%
Ltd.
</TABLE>
The Prospectus, together with this Prospectus Supplement, constitutes
the prospectus required to be delivered by Section 5(b) of the Securities
Act of 1933, as amended, with respect to offers and sales of the
Convertible Preferred Securities and McKessonHBOC Common Stock issuable
upon conversion of the Convertible Preferred Securities. All references in
the Prospectus to "this Prospectus" are hereby amended to read "this
Prospectus (as supplemented and amended)".
Consider carefully the risk factors above and beginning on page 6 in this
prospectus.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon
the adequacy or accuracy of this prospectus. Any representation to the
contrary is a criminal offense.
This prospectus supplement is dated February 1, 1999.
