Summary
This Form 8-K filing by Cardinal Health, Inc. (CAH) reports a significant amendment to its receivables purchase facility, enhancing its financial flexibility. On September 30, 2004, Cardinal Health Funding, LLC, a wholly-owned subsidiary, amended its existing agreement to increase the facility's maximum aggregate principal amount from $500 million to $800 million. This expansion allows for greater access to capital through the sale of trade receivables from its Pharmaceutical Distribution business. The amendment represents a strategic move to bolster the company's liquidity and support its ongoing operations and growth initiatives. The extended facility involves several financial institutions and a structured process where receivables are sold to a servicer subsidiary and then to the funding subsidiary, which then transfers interests to conduits in exchange for cash. Cardinal Health, Inc. has also provided a performance guaranty, underscoring its commitment to the facility's obligations.
Key Highlights
- 1Cardinal Health's subsidiary, Cardinal Health Funding, LLC, entered into an amendment to its receivables purchase agreement.
- 2The amendment increases the maximum receivables purchase facility amount from $500 million to $800 million.
- 3This expansion provides enhanced liquidity and financial flexibility for the company.
- 4The facility involves the sale of existing and future trade receivables from the Pharmaceutical Distribution business.
- 5Cardinal Health, Inc. has issued an Amended and Restated Performance Guaranty to support the obligations under the facility.
- 6The agreement involves multiple financial institutions, including The Bank of Nova Scotia and Bank One, NA.