Cardinal Health announces redemption of outstanding notes

Rhea-AI Summary

Cardinal Health (CAH) announced an irrevocable early redemption of its outstanding 2.616% notes due June 2022, totaling $572,171,000. The redemption date is set for September 15, 2021. This measure aligns with the terms outlined in the June 2, 2008 indenture, allowing the redemption at greater of 100% principal or the present value of remaining scheduled payments. The company emphasizes this does not constitute a sale or solicitation of securities. Cardinal Health is a leading distributor of pharmaceuticals and medical products.

Positive

• Executing early redemption of $572,171,000 notes indicates financial prudence.
• Redemption could potentially improve capital structure and reduce interest expenses.

Negative

• None.

DUBLIN, Ohio, Aug. 13, 2021 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today that it is sending an irrevocable notice of early redemption to the holders of all of the Company's 2.616% notes due June 2022 that are outstanding as of the early redemption date (aggregate principal amount of $572,171,000). The early redemption date is set to September 15, 2021, pursuant to the June 2, 2008 indenture and the 2.616% notes.

With respect to the 2.616% notes, in accordance with the terms and conditions set forth in the indenture and the 2.616% notes, the 2.616% notes will be redeemed at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed that would be due if the notes of such series matured on May 15, 2022 (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined in the 2.616% notes) plus 15 basis points, plus, in either case, accrued and unpaid interest on the amount of the 2.616% notes being redeemed to, but excluding, the date of redemption.

This press release shall not constitute a notice of redemption of the 2.616% notes, and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With 50 years in business, operations in more than 40 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

Cautions concerning forward-looking statements
This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include, but are not limited to, volatility or disruption in the debt capital markets. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This release reflects management's views as of August 13, 2021. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

Media Contact:
Andrew Stern
614-339-4678
andrew.stern@cardinalhealth.com

Investor Contact:
Kevin Moran
614-757-7942
kevin.moran@cardinalhealth.com

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SOURCE Cardinal Health

FAQ

What is Cardinal Health's plan for the 2.616% notes due June 2022?

Cardinal Health plans to redeem all outstanding 2.616% notes due June 2022 on September 15, 2021.

How much is Cardinal Health redeeming in 2.616% notes?

Cardinal Health is redeeming $572,171,000 in 2.616% notes.

When is the early redemption date for Cardinal Health's notes?

The early redemption date for the notes is set for September 15, 2021.

What determines the redemption price of the 2.616% notes?

The redemption price is the greater of 100% of principal or the present value of remaining scheduled payments.

Does the press release indicate any risks associated with the redemption?

The release does not specify risks associated with the redemption of the notes.