8-KOther EventsExhibits & Filings

CARDINAL HEALTH INC 8-K Report, Corporate Update (Dec 14, 2010)

Filed December 14, 2010For Securities:CAH

Summary

Cardinal Health, Inc. (CAH) announced on December 13, 2010, the successful issuance and sale of $500 million in aggregate principal amount of 4.625% notes due 2020. This debt offering was facilitated through an underwriting agreement with Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities LLC. The offering was conducted under the company's effective registration statement on Form S-3, indicating a well-established process for capital raising. This filing is important for investors as it details a significant financing activity for Cardinal Health. The issuance of long-term debt suggests the company is likely using these funds for strategic initiatives, potential acquisitions, debt refinancing, or general corporate purposes. The specific coupon rate of 4.625% provides insight into the cost of capital for this issuance, and the maturity date of 2020 offers a view into the company's long-term financial strategy and commitment. The filing also includes key supporting documents, such as the underwriting agreement and legal opinions, which provide further assurance regarding the legitimacy and terms of the debt offering.

Key Highlights

  • 1Cardinal Health issued and sold $500 million in aggregate principal amount of 4.625% notes due 2020.
  • 2The debt offering occurred on December 13, 2010.
  • 3The underwriters for the offering included Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities LLC.
  • 4The notes were issued under the company's effective registration statement on Form S-3 (Registration Statement No. 333-169073).
  • 5The notes are governed by an Indenture dated June 2, 2008, with The Bank of New York Mellon Trust Company, N.A.
  • 6The filing includes the Underwriting Agreement as Exhibit 1.1.
  • 7Legal opinions regarding the legality of the notes are provided as exhibits (5.1 and 5.2).

Frequently Asked Questions

This 8-K filing announces and provides details about Cardinal Health's issuance and sale of $500 million in 4.625% notes due 2020. It includes information about the underwriters, the registration process, and related legal documentation.

While the filing does not explicitly state the use of proceeds, typically, funds raised from such debt offerings are used for general corporate purposes, strategic investments, potential acquisitions, refinancing existing debt, or funding operational growth. Investors should look for future disclosures or earnings calls for more specific details.

The 4.625% coupon rate represents the annual interest expense Cardinal Health will incur on these notes. It reflects the market's perception of Cardinal Health's creditworthiness at the time of issuance and the prevailing interest rate environment for corporate debt.

The full terms and conditions of the notes are detailed in the Indenture dated June 2, 2008, between Cardinal Health and The Bank of New York Mellon Trust Company, N.A., which is filed as Exhibit 4.1 to this 8-K report. The Underwriting Agreement (Exhibit 1.1) and legal opinions (Exhibits 5.1 and 5.2) also provide relevant context.