Cardinal Health Inc. Enters $4.0B Revolving Credit Facility

What Happened

• Cardinal Health, Inc. announced on Aug 11, 2026 (agreement dated Aug 7, 2026) that it entered into an unsecured Credit Agreement providing access to a $4.0 billion revolving credit facility. Wells Fargo Bank, N.A. serves as Administrative Agent; Wells Fargo Securities, BofA Securities, Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A. are Joint Lead Arrangers and Joint Bookrunners. The facility replaces the company’s prior 364‑day and five‑year revolving credit facilities and its receivables sale facility program, and the company may use the facility for general corporate purposes.

Key Details

• Dollar amount: $4.0 billion revolving credit facility.
• Term: maturity (Termination Date) of Aug 7, 2031, with the Company able to extend the Termination Date by up to two years (subject to conditions).
• Covenant: Consolidated Net Leverage Ratio must be no greater than 4.00 to 1.00 as of the last day of any fiscal quarter.
• Other terms: unsecured facility with customary representations, affirmative/negative covenants and events of default; replaces prior credit and receivables sale arrangements.

Why It Matters

• This agreement secures multi‑year liquidity capacity ($4.0B) for Cardinal Health and replaces prior short‑ and long‑term credit arrangements, which can affect the company’s funding flexibility and cash management. The financial covenant (≤4.0x net leverage) is a measurable requirement investors can monitor each quarter. The facility’s size and unsecured nature signal access to committed credit without new collateral, while customary covenants and default provisions set conditions the company must meet to avoid lender remedies.