01—Abstract
Summary
Summary of the 8-K filed August 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Cardinal Health, Inc. (CAH) announced on August 11, 2026, the entry into a new unsecured Credit Agreement, effective August 7, 2026.
This agreement provides the Company with access to a $4.0 billiona revolving credit facility, maturing in August 2031, with an option to extend for up to two additional years. This new facility replaces and consolidates the Company's existing 364-day and five-year revolving credit facilities, as well as its receivables sale facility program. The new credit agreement includes standard covenants and requires the Company to maintain a Consolidated Net Leverage Ratio of no greater than 4.00 to 1.00 as of the end of each fiscal quarter.
The Company intends to use this facility for general corporate purposes. Concurrently, the Company terminated its prior credit agreements and receivables sale program. Notably, there were no penalties incurred as a result of these terminations.
This strategic move consolidates CAH's borrowing capacity under a single, larger facility, potentially simplifying its debt management and enhancing financial flexibility. The new credit agreement reflects a commitment from major financial institutions, underscoring their continued confidence in Cardinal Health's operations.
02—Key points
Key Highlights
- Cardinal Health has secured a new $4.0 billion unsecured revolving credit facility maturing in August 2031, with a potential two-year extension.
- The new credit facility consolidates and replaces previous 364-day, five-year revolving credit facilities, and a receivables sale program.
- The Company has the option to extend the termination date of the new credit facility by up to two years.
- A key financial covenant requires Cardinal Health to maintain a Consolidated Net Leverage Ratio of no greater than 4.00 to 1.00.
- The new facility is intended for general corporate purposes, providing flexibility for the Company's operations.
- The termination of previous agreements did not result in any penalties for Cardinal Health.
- The new credit agreement was entered into with a syndicate of prominent financial institutions, including Wells Fargo Bank, National Association as Administrative Agent.
03—Questions
Frequently Asked Questions
What is the total amount of the new credit facility, and when does it mature?
The new unsecured Credit Agreement provides Cardinal Health with access to $4.0 billion of revolving credit. The facility matures on August 7, 2031, with an option for the Company to extend the termination date by up to two years.
What existing credit facilities does this new agreement replace?
This new Credit Agreement replaces the Company's existing 364-day revolving credit facility, its five-year revolving credit facility, and its existing receivables sale facility program.
What is the main financial covenant associated with the new credit facility?
The primary financial covenant requires Cardinal Health to maintain a Consolidated Net Leverage Ratio of no greater than 4.00 to 1.00, as of the last day of any fiscal quarter, subject to the terms defined in the Credit Agreement.
Did Cardinal Health incur any penalties for terminating its previous credit agreements?
No, the Company explicitly stated that there were no penalties incurred as a result of the termination of its previous credit agreements and receivables sale program.
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