| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Cardinal Health, Inc. > News item |
Cardinal eyes $4.5 billion notes for acquisition, secures bridge loan
By Devika Patel
Knoxville, Tenn., April 18 – Cardinal Health, Inc. said it plans to sell $4.5 billion of new senior notes to help finance its acquisition of Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses for $6.1 billion in cash.
While Cardinal plans to issue long-term debt to finance the transaction, it has obtained a commitment letter from Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC to provide a $4.5 billion unsecured bridge loan.
“We intend to finance the acquisition with a combination of $4.5 billion in new senior unsecured notes and existing cash on hand,” chief financial officer Mike Kaufmann said on the company’s conference call announcing the transaction on Tuesday.
“We have secured bridge financing but plan to issue public debt to fund the transaction prior to closing.
“We do not intend to draw on the bridge facility.
“We will be monitoring the debt markets and will be ready to execute the best possible financing to secure attractive financing costs for the company.
“Given our current ratings, the margin accretion and strong cash flows of the new business, our commitment to repay $1.5 billion of this debt over the next three years and our long history of prudent capital deployment, we fully expect to de-lever to an adjusted debt to non-GAAP EBITDA ratio of slightly greater than 2x by the end of fiscal 2020,” he said.
The transaction is expected to close in the first quarter of Cardinal Health's fiscal year 2018.
Cardinal Health is a Dublin, Ohio-based health-care services company that provides pharmaceutical and medical products.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.