Summary
Cardinal Health, Inc. (CAH) filed an 8-K report on November 11, 2010, detailing a material definitive agreement. Specifically, the company's receivables financing subsidiary, Cardinal Health Funding, LLC, entered into a Sixth Amendment, Waiver and Joinder to its existing Third Amended and Restated Receivables Purchase Agreement. This amendment is significant as it extends the company's $950 million revolving receivables purchase facility for an additional two years, now maturing on November 9, 2012. Key changes in the amendment include the removal of Bank of America, N.A. as a participant and the addition of Wells Fargo Bank, N.A., The Bank of Nova Scotia, and Liberty Street Funding LLC as new participants. This extension and modification of the financing facility demonstrates the company's continued access to its revolving credit lines and ensures ongoing liquidity for its receivables financing operations, which is a crucial aspect of its business model.
Key Highlights
- 1Cardinal Health entered into a Sixth Amendment to its Receivables Purchase Agreement on November 9, 2010.
- 2The amendment extends the $950 million revolving receivables purchase facility for two years, with a new maturity date of November 9, 2012.
- 3Bank of America, N.A. has been removed as a participant in the facility.
- 4Wells Fargo Bank, N.A., The Bank of Nova Scotia, and Liberty Street Funding LLC have been added as new participants.
- 5The amendment ensures continued access to a significant financing facility, supporting the company's liquidity and operational needs.
- 6The filing also notes that several financial institutions involved in the agreement have provided other commercial and investment banking services to Cardinal Health and its affiliates.
- 7The full text of the amendment is included as an exhibit to the 8-K filing.