Company Also Amends Existing $750 Million
Credit Facility; Total Liquidity Now at $1.7 Billion
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider
of health care solutions to office-based dental and medical
professionals, today announced that it has closed on a new credit
facility totaling $700 million, with JP Morgan Securities LLC and
U.S. Bank NA serving as Joint Lead Arrangers.
The new facility represents $700 million in committed financing
that increases and replaces $200 million in uncommitted financing
from the same lenders. The Company’s liquidity position now totals
$1.7 billion.
The breakdown of the new financing is as follows: a $500
million, 364-day term loan, and a $200 million, 364-day revolving
credit facility. Henry Schein also amended its existing $750
million revolving credit facility, most notably to include the
temporary amendment of the Company’s covenant calculation to
reflect Net Debt instead of Gross Debt, as well as an increase in
the maximum leverage allowed under the covenant to 3.75x earnings
before interest, tax, depreciation, and amortization. The amended
facility matures in April 2022.
“The new financing, along with our amended existing facility,
increases our financial flexibility at a critical moment in the
global economy,” said Steven Paladino, Executive Vice President and
Chief Financial Officer of Henry Schein. “These facilities support
our effort to navigate the emerging challenges related to the
COVID-19 outbreak while also helping to position Henry Schein for
future growth and success.”
About Henry Schein, Inc. Henry Schein, Inc. (Nasdaq:
HSIC) is a solutions company for health care professionals powered
by a network of people and technology. With more than 19,000 Team
Schein Members worldwide, the Company's network of trusted advisors
provides more than 1 million customers globally with more than 300
valued solutions that improve operational success and clinical
outcomes. Our Business, Clinical, Technology, and Supply Chain
solutions help office-based dental and medical practitioners work
more efficiently so they can provide quality care more effectively.
These solutions also support dental laboratories, government and
institutional healthcare clinics, as well as other alternate care
sites.
Henry Schein operates through a centralized and automated
distribution network, with a selection of more than 120,000 branded
products and Henry Schein private-brand products in stock, as well
as more than 180,000 additional products available as special-order
items.
A FORTUNE 500 Company and a member of the S&P 500® index,
Henry Schein is headquartered in Melville, N.Y., and has operations
or affiliates in 31 countries. The Company's sales from continuing
operations reached $10.0 billion in 2019, and have grown at a
compound annual rate of approximately 13 percent since Henry Schein
became a public company in 1995.
For more information, visit Henry Schein at www.henryschein.com,
Facebook.com/HenrySchein, and @HenrySchein on Twitter.
Cautionary Note Regarding Forward-Looking Statements
In accordance with the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995, we provide the following
cautionary remarks regarding important factors that, among others,
could cause future results to differ materially from the
forward-looking statements, expectations and assumptions expressed
or implied herein. All forward-looking statements made by us are
subject to risks and uncertainties and are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance and achievements or industry results to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. These statements are identified by the use of such
terms as "may," "could," "expect," "intend," "believe," "plan,"
"estimate," "forecast," "project," "anticipate," “to be,” “to
make”, “understand or understanding” “understand,” or other
comparable terms. A full discussion of our operations and financial
condition, status of litigation matters, including factors that may
affect our business and future prospects, is contained in documents
we have filed with the United States Securities and Exchange
Commission, or SEC, and will be contained in all subsequent
periodic filings we make with the SEC. These documents identify in
detail important risk factors that could cause our actual
performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results
to differ materially from current and historical results include,
but are not limited to: effects of a highly competitive and
consolidating market; increased competition by third party online
commerce sites; our dependence on third parties for the manufacture
and supply of our products; our dependence upon sales personnel,
customers, suppliers and manufacturers; our dependence on our
senior management; fluctuations in quarterly earnings; risks from
expansion of customer purchasing power and multi-tiered costing
structures; increases in shipping costs for our products or other
service issues with our third-party shippers; general global
macro-economic conditions; risks associated with currency
fluctuations; risks associated with political and economic
uncertainty; disruptions in financial markets; volatility of the
market price of our common stock; changes in the health care
industry; implementation of health care laws; failure to comply
with regulatory requirements and data privacy laws; risks
associated with our global operations; risks associated with the
Novel Coronavirus Disease 2019 (COVID-19); risk associated with the
United Kingdom's withdrawal from the European Union; transitional
challenges associated with acquisitions, dispositions and joint
ventures, including the failure to achieve anticipated
synergies/benefits; financial and tax risks associated with
acquisitions, dispositions and joint ventures; litigation risks;
new or unanticipated litigation developments and the status of
litigation matters; the dependence on our continued product
development, technical support and successful marketing in the
technology segment; our dependence on third parties for certain
technologically advanced components; risks from disruption to our
information systems; cyberattacks or other privacy or data security
breaches; certain provisions in our governing documents that may
discourage third-party acquisitions of us; and changes in tax
legislation. The order in which these factors appear should not be
construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that
many of these factors are beyond our ability to control or predict.
Accordingly, any forward-looking statements contained herein should
not be relied upon as a prediction of actual results. We undertake
no duty and have no obligation to update forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200420005779/en/
Investors Steven Paladino
Executive Vice President and Chief Financial Officer
steven.paladino@henryschein.com (631) 843-5500
Carolynne Borders Vice President, Investor Relations
carolynne.borders@henryschein.com (631) 390-8105
Media Ann Marie Gothard,
Vice President, Global Corporate Media Relations,
Annmarie.gothard@henryschein.com, (631) 390-8169
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