Summary
Cardinal Health, Inc. (CAH) filed an 8-K on November 6, 2006, reporting on a material definitive agreement. Specifically, the company's wholly-owned subsidiary, Cardinal Health Funding, LLC, entered into a second amendment and restatement of its receivables purchase agreement on October 31, 2006. This amendment extends an $800 million revolving receivables purchase facility for an additional 364 days. This facility is crucial for the company's liquidity and ongoing operations, allowing it to securitize its trade receivables.
Key Highlights
- 1Cardinal Health's subsidiary, Cardinal Health Funding, LLC, amended and restated its receivables purchase agreement.
- 2The $800 million revolving receivables purchase facility has been extended by an additional 364 days.
- 3This agreement facilitates the securitization of the company's trade receivables through various subsidiaries and financial institutions.
- 4The transaction structure involves the sale of existing and future trade receivables to Cardinal Health Funding, LLC.
- 5The company, through its subsidiary Griffin Capital, LLC, acts as a servicer for these receivables.
- 6Standard amortization events, including defaults, breaches, and changes of control, are outlined in the agreement.
- 7Several major financial institutions, including The Bank of Nova Scotia, ABN AMRO Bank N.V., and JPMorgan Chase Bank, N.A., are involved as agents and participants in the facility.