Summary
Cardinal Health Inc. (CAH) has entered into a new 364-Day Credit Agreement, securing access to a $1.0 billion revolving credit facility maturing on October 7, 2025. This facility is intended for general corporate purposes and will back the company's commercial paper program. The agreement includes standard covenants, with a key financial covenant requiring a Consolidated Net Leverage Ratio of no greater than 3.75 to 1.00. Additionally, the company has amended its Issuing and Paying Agency Agreement to increase the maximum principal amount of commercial paper notes outstanding from $2.0 billion to $3.0 billion. These actions indicate a proactive approach to managing liquidity and financing needs.
Key Highlights
- 1Secured a new $1.0 billion 364-Day Credit Agreement providing revolving credit access until October 7, 2025.
- 2The new credit facility is designated for general corporate purposes and supports the company's commercial paper program.
- 3A key financial covenant mandates a Consolidated Net Leverage Ratio of no more than 3.75 to 1.00.
- 4Increased the maximum authorized amount for outstanding commercial paper notes from $2.0 billion to $3.0 billion.
- 5The company retains the option to convert outstanding loans into non-revolving term loans, repayable one year after the termination date.
- 6Interest rates on borrowings are variable, based on Term SOFR and the company's credit ratings.