Cardinal Health announces redemption of outstanding notes

Rhea-AI Summary

Cardinal Health (NYSE: CAH) announced an irrevocable early redemption notice for its outstanding notes, totaling $500 million, due June 2022. The affected notes include $237.56 million at a rate of 3.200% and $262.44 million at 2.616%. The redemption date is set for June 15, 2021. The redemption prices will be determined based on specific terms outlined in the indentures, ensuring holders receive the greater of principal or present values of remaining payments. This move reflects Cardinal Health's strategy to manage debt effectively.

Positive

• Conducting early redemption of $500 million in notes reduces future interest obligations and enhances balance sheet flexibility.
• Strengthens financial position by lowering debt levels ahead of maturity.

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• None.

DUBLIN, Ohio, May 14, 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 3.200% notes due June 2022 that are outstanding as of the early redemption date (aggregate principal amount of $237,558,000) and $262,442,000 in aggregate principal amount of the Company's 2.616% notes due June 2022. The early redemption date is set to June 15, 2021, pursuant to the June 2, 2008 indenture and the notes.

With respect to the 3.200% notes, in accordance with the terms and conditions set forth in the indenture and the notes, the 3.200% notes will be redeemed at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (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 then current adjusted treasury rate (as defined in the notes) plus 25 basis points, plus, in either case, accrued but unpaid interest on the principal amount being redeemed to the redemption date.

With respect to the 2.616% notes, in accordance with the terms and conditions set forth in the indenture and the 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 then current adjusted treasury rate (as defined in the notes) plus 15 basis points, plus, in either case, accrued but unpaid interest on the principal amount being redeemed to the redemption date.

This press release shall not constitute a notice of redemption of the 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 May 14, 2021. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

Media:  Sarah Shew 614.553.3401 Sarah.Shew@cardinalhealth.com

Investors:  Kevin Moran 614.757.7942 Kevin.Moran@cardinalhealth.com

 

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SOURCE Cardinal Health

FAQ

What is Cardinal Health's recent announcement regarding note redemption?

Cardinal Health announced an early redemption of $500 million in notes due June 2022, set for June 15, 2021.

What are the details of the notes being redeemed by Cardinal Health?

The redemption includes $237.56 million of 3.200% notes and $262.44 million of 2.616% notes.

How will Cardinal Health determine the redemption price for the notes?

The redemption price will be the greater of 100% of the principal or the present value of remaining scheduled payments, plus accrued interest.

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

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