Summary
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 billion 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.
Key Highlights
- 1Cardinal Health has secured a new $4.0 billion unsecured revolving credit facility maturing in August 2031, with a potential two-year extension.
- 2The new credit facility consolidates and replaces previous 364-day, five-year revolving credit facilities, and a receivables sale program.
- 3The Company has the option to extend the termination date of the new credit facility by up to two years.
- 4A key financial covenant requires Cardinal Health to maintain a Consolidated Net Leverage Ratio of no greater than 4.00 to 1.00.
- 5The new facility is intended for general corporate purposes, providing flexibility for the Company's operations.
- 6The termination of previous agreements did not result in any penalties for Cardinal Health.
- 7The new credit agreement was entered into with a syndicate of prominent financial institutions, including Wells Fargo Bank, National Association as Administrative Agent.