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Henry Schein enters into $700 million 364-day credit agreement
By Wendy Van Sickle
Columbus, Ohio, April 20 – Henry Schein, Inc. obtained a new $700 million 364-day credit agreement comprised of a $500 million term facility and a $200 million revolver on Friday, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA, U.S. Bank NA, TD Bank NA, ING Bank, NV Dublin Branch and MUFG Bank. Ltd. are the joint lead arrangers and joint bookrunners.
The company plans to use the new credit facility for working capital and general corporate purposes, including permitted refinancing of existing debt.
JPMorgan is the administrative agent. U.S. Bank is the syndication agent. TD Bank, ING and MUFG, Bank of New York Mellon and UniCredit Bank are co-documentation agents.
Revolver borrowings bear interest at Libor plus a margin ranging from 142.5 basis points to 172.5 bps.
Term loan borrowings bear interest at Libor plus a margin ranging from 162.5 bps to 212.5 bps.
In each case, the margin is based on net leverage ratio.
Henry Schein also entered into an amendment to its existing $750 million revolver to modify the financial covenant to being based on net leverage ratio from total leverage ratio; adjust the pricing grid to reflect the net leverage ratio calculation; increase the maximum maintenance leverage ratio through March 31, 2021; and make certain other changes conforming to the 364-day credit agreement.
“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, in a news release. “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.”
Henry Schein is a Melville, N.Y.-based provider of health care products and services to office-based dental, medical and animal health practitioners.
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