Cardinal Health entered into a new $4.0 billion unsecured revolving credit agreement, effective August 7, 2026. This new, single facility replaces and terminates three of the company's previous credit and receivables sale facilities, consolidating its debt structure under one primary agreement intended for general corporate purposes.
Key Details
- New Facility: The company secured a $4.0 billion unsecured revolving credit facility maturing on August 7, 2031. The agreement includes an option to extend the termination date by up to two years.
- Replaced Agreements: This new facility replaces a $2.0 billion five-year credit agreement, a $1.0 billion 364-day credit agreement, and a $1.0 billion receivables sale facility, all of which were terminated on August 7, 2026.
- Financial Covenant: The agreement contains a financial covenant requiring 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.