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Cardinal Health Inc. (NYSE:CAH), a healthcare provider with a market capitalization of $35.65 billion, announced Wednesday that it has completed a public offering of $1 billion in senior notes, according to a statement filed with the Securities and Exchange Commission. The offering includes $600 million of 4.500% notes due 2030 and $400 million of 5.150% notes due 2035. According to InvestingPro analysis, the company maintains strong cash flows sufficient to cover interest payments, with a healthy Altman Z-Score of 5.97 indicating solid financial stability.
The company stated that proceeds from the notes will be used to fund a portion of the consideration for its proposed acquisition of Solaris Health, as well as related fees and expenses. Until the acquisition is completed, Cardinal Health may use the funds for general corporate purposes. The company’s current debt profile shows a manageable total debt to total capital ratio of 0.21, suggesting room for additional leverage.
According to the filing, if the Solaris Health acquisition is not completed by August 12, 2026, or by a later date if extended under the acquisition agreement, or if Cardinal Health decides not to proceed with the acquisition, the company will be required to redeem the notes in full. In such an event, the redemption price will be 101% of the principal amount, plus accrued and unpaid interest up to, but not including, the redemption date. The company noted that the proceeds from the sale of the notes will not be held in escrow, nor will they be secured by any lien or security interest.
The notes are governed by an indenture dated June 2, 2008, as supplemented on August 27, 2025, with The Bank of New York Mellon Trust Company, N.A. acting as trustee. Legal opinions regarding the issuance and sale of the notes were provided by Cardinal Health’s Executive Vice President and General Counsel, Patrick Pope, and by White & Case LLP.
Cardinal Health’s common shares are listed on the New York Stock Exchange under the symbol CAH. The information in this article is based on a press release statement filed with the SEC.
In other recent news, Cardinal Health reported its fourth-quarter earnings for fiscal 2025, revealing a slight earnings per share (EPS) beat but a revenue miss. The company posted an EPS of $2.08, exceeding the expected $2.03, while revenue came in at $60.2 billion, falling short of the forecasted $60.92 billion. Additionally, Cardinal Health announced a $1 billion notes offering in two tranches, with $600 million in 4.500% notes due in 2030 and $400 million in 5.150% notes due in 2035. This offering was underwritten by Goldman Sachs, BofA Securities, and Wells Fargo Securities. The company also declared a quarterly dividend of $0.5107 per share, payable to shareholders of record as of October 1, 2025. These developments indicate Cardinal Health’s ongoing financial activities and shareholder returns.
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