Summary
Cardinal Health, Inc. (CAH) filed an 8-K report on October 20, 2004, to disclose significant activity related to its credit facilities. The company announced that on October 19, 2004, it borrowed a total of $750 million under its two existing five-year, $750 million revolving credit facilities. These facilities were initially established on March 27, 2003, and March 23, 2004, and are available for general corporate purposes. The proceeds from this recent borrowing are intended for general corporate needs, specifically including the establishment of pharmaceutical inventory at the company's new National Logistics Center located in Groveport, Ohio. This event increases the total outstanding amount under these credit facilities from $500 million to $1.25 billion. Additionally, the company disclosed it has received a commitment letter for a new $500 million committed borrowing facility, which is currently under negotiation. The filing also includes the formal submission of the March 23, 2004, credit agreement and the first amendment dated March 24, 2004, to a prior credit agreement as exhibits. This disclosure provides investors with transparency regarding the company's short-term financing strategies and its capacity to fund operational expansion, such as the new logistics center.
Key Highlights
- 1Cardinal Health borrowed $750 million on October 19, 2004, under its existing revolving credit facilities.
- 2The borrowed funds are earmarked for general corporate purposes, including establishing pharmaceutical inventory at a new National Logistics Center in Groveport, Ohio.
- 3The company maintains two five-year, $750 million revolving credit facilities, entered into in March 2003 and March 2004.
- 4The borrowing increased the total outstanding amount under these facilities to $1.25 billion, up from $500 million prior to the borrowing.
- 5Cardinal Health has secured a commitment letter for an additional $500 million committed borrowing facility, which is currently being negotiated.
- 6The filing includes as exhibits the March 23, 2004, five-year credit agreement and the first amendment to a March 27, 2003, credit agreement.