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 items 4 and 65 of that table and the substitution therefor of
items 4 and 65 below:
<TABLE>
<CAPTION>
Convertible Preferred Convertible Preferred
Securities Owned Securities Owned
Prior to Offering Number of After Offering
--------------------- Convertible Preferred ---------------------
"Selling Holder Number Percent Securities Offered Number Percent
----------------------------- ------ ------- --------------------- ------ -------
<S> <C> <C> <C> <C> <C>
4. New York Life Insurance
Company 32,000 0.80% 32,000 0 0.00
65. Salomon Smith Barney Inc. 20,050 0.50% 20,050 0 0.00
</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 5, 1999.
