CareFusion Corp., a subsidiary that parent company Cardinal
Health Inc. (CAH) plans to spin off, recently entered into several
debt agreements, Cardinal disclosed to the Securities and Exchange
Commission in a filing Monday.
CareFusion on Wednesday entered into a three-year revolving
credit facility with various banks for a maximum aggregate
principal amount of $480 million and a 364-day revolving credit
facility for a maximum aggregate principal amount of $240 million.
Parties to the agreements included Bank of America N.A., JPMorgan
Chase Bank N.A., Morgan Stanley Senior Funding Inc., Banc of
America Securities LLC and J.P. Morgan Securities Inc.
Proceeds from the revolving credit facilities will be used for
working capital, capital expenditures and other purposes, provided
that up to $200 million may be used to repay loans under a separate
bridge facility. Borrowings under the revolving credit facilities
will bear interest at a floating rate that varies based on
CareFusion's debt ratings. Commitments under the three-year
revolving credit facility may be subject to increase by as much $30
million.
CareFusion on Wednesday also entered into a bridge loan
agreement with Bank of America, J.P. Morgan Securities and Morgan
Stanley Senior Funding for an aggregate principal amount of $1.4
billion, to be used for the payment of a special cash distribution
to Cardinal Health in connection with the spinoff, which Cardinal
aims to complete this year. The interest on the bridge facility
also will be at a floating rate that varies according to
CareFusion's debt ratings.
The debt facilities will be available for borrowing upon
CareFusion's compliance with various closing conditions, which must
occur on or before Oct. 15, 2009.
-By Dinah Wisenberg Brin, Dow Jones Newswires; 215-656-8285;
dinah.brin@dowjones.com