Summary
Cardinal Health, Inc. (CAH) announced the initiation of a new commercial paper program on August 9, 2006, allowing for the issuance of short-term unsecured notes up to an aggregate amount of $1.0 billion. These notes will have maturities not exceeding 364 days from issuance. The company anticipates this program will enable it to secure more favorable short-term borrowing rates. In conjunction with this new program, Cardinal Health also terminated its existing commercial paper dealer agreements with Banc of America, Credit Suisse First Boston, J.P. Morgan, and Barclays Capital Inc., effective August 10, 2006, without incurring any penalties. This strategic move suggests a refinancing or optimization of its short-term debt facilities to potentially reduce borrowing costs and streamline its financial operations.
Key Highlights
- 1Cardinal Health established a new commercial paper program with a maximum aggregate issuance of $1.0 billion.
- 2The program allows for the issuance of short-term unsecured notes with maturities of up to 364 days.
- 3The company expects the new program to provide access to more favorable short-term borrowing rates.
- 4Existing commercial paper dealer agreements with Banc of America, Credit Suisse First Boston, J.P. Morgan, and Barclays Capital Inc. were terminated.
- 5The termination of previous agreements is effective August 10, 2006, and incurs no penalties.
- 6The Bank of New York will serve as the Issuing and Paying Agent.
- 7J.P. Morgan Securities Inc., Banc of America Securities LLC, Wachovia Capital Markets, LLC, and Goldman, Sachs & Co. will act as Dealers for the new program.