Cardinal Health Enters Material Definitive Agreement

TL;DR

Cardinal Health just signed a big deal, creating a new financial obligation.

AI Summary

On October 8, 2024, Cardinal Health, Inc. entered into a material definitive agreement, which also created a direct financial obligation for the company. The filing details this agreement and related financial obligations, with further information provided in the accompanying exhibits.

Why It Matters

This filing indicates a significant new contractual commitment or financial obligation for Cardinal Health, which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating new financial obligations can introduce financial risks and operational changes that warrant careful consideration.

Key Players & Entities

• Cardinal Health, Inc. (company) — Registrant
• Ohio (location) — State of incorporation
• October 8, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $1.0 billion — er things, allows the Company access to $1.0 billion of revolving credit through October 7,
• $2.0 billion — under its commercial paper program from $2.0 billion to $3.0 billion. Certain of the finan
• $3.0 billion — cial paper program from $2.0 billion to $3.0 billion. Certain of the financial institution

Filing Documents

• cah-20241008.htm (8-K) — 32KB
• cardinalhealth-creditagree.htm (EX-10.1) — 905KB
• fourthamendmenttoipaa.htm (EX-10.2) — 19KB
• 0000721371-24-000112.txt ( ) — 1212KB
• cah-20241008.xsd (EX-101.SCH) — 2KB
• cah-20241008_lab.xml (EX-101.LAB) — 21KB
• cah-20241008_pre.xml (EX-101.PRE) — 12KB
• cah-20241008_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement On October 8, 2024, (i) Cardinal Health, Inc. (the "Company"), (ii) Bank of America, N.A., as Administrative Agent and (iii) each lender from time to time party thereto entered into a 364-Day Credit Agreement (the "Credit Agreement"). The Credit Agreement, among other things, allows the Company access to $1.0 billion of revolving credit through October 7, 2025 (the "Termination Date"). The Company is permitted, subject to certain conditions specified in the Credit Agreement, to elect to have the principal of any loans outstanding on the Termination Date converted into non-revolving term loans, which shall be repaid in full on the date that is one year after the Termination Date. Interest rates on borrowings under the Credit Agreement will be based on prevailing interest rates, benchmarked based on Term SOFR and subject to the Company's credit ratings, as described in the Credit Agreement. The Credit Agreement contains customary representations and affirmative and negative covenants (including restrictions on incurring liens, subsidiary indebtedness and contingent obligations). The financial covenant in the Credit Agreement requires the Company to maintain, as of the last day of any fiscal quarter, a Consolidated Net Leverage Ratio, as such term is defined in the Credit Agreement and subject to certain conditions contained therein, of no greater than 3.75 to 1.00. The Credit Agreement also contains customary events of default (including non-payment of principal or interest and breaches of covenants). If any event of default occurs and is not cured within the applicable grace period, any outstanding loans under the facility may be accelerated by lenders and the lenders' commitments under the Credit Agreement may be terminated. This revolving credit facility may be used for general corporate purposes and backs the Company's commercial paper program. The descriptions of the provisions of the Credit Agreement

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibits. Exhibit Number Exhibit Description 10.1 364-Day Credit Agreement, dated October 8, 2024 10.2 Fourth Amendment, to Issuing and Paying Agency Agreement, dated October 8, 2024 * 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * Certain provisions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K

Signatures

Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Cardinal Health, Inc. (Registrant) Date: October 10, 2024 By: /s/ AARON E. ALT Aaron E. Alt Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR