Cardinal Health lifts revolver to $1.75 billion, pushes out until 2021

By Susanna Moon

Chicago, June 21 – Cardinal Health, Inc. increased its revolving credit facility to $1.75 billion and extended the maturity until June 16, 2021, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans is initially Libor plus 102.5 basis points, with a spread ranging from 68 bps to 130 bps based on the company’s credit ratings. The facility fee is 10 bps and ranges from 7 bps to 20 bps.

The amendment also removes the company’s obligation to maintain a consolidated interest coverage ratio.

The revolver backs the company's commercial paper program and may be used for general corporate purposes.

The company amended the facility last Thursday with Bank of America Merrill Lynch as joint lead arranger and joint book manager; MUFG as syndication agent, joint lead arranger and joint book manager; JPMorgan Chase Bank, NA as administrative agent, joint lead arranger and joint book manager; Bank of America, NA as syndication agent and Barclays Bank plc, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, HSBC Bank USA, NA, Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank, NA as documentation agents.

In connection with the changes, the company will reduce its committed receivables sales facility program to $700 million from $950 million, effective June 30.

Cardinal Health is a Dublin, Ohio-based health-care services company that provides pharmaceutical and medical products.

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