Henry Schein extends $1 billion revolver, signs $750 million term loan

By William Gullotti

Buffalo, N.Y., July 13 – Henry Schein, Inc. amended, restated and extended its existing $1 billion revolving credit agreement and closed on a new $750 million term loan agreement with JPMorgan Chase Bank, NA as administrative agent on July 11, according to an 8-K filing with the Securities and Exchange Commission.

The new term loan matures July 11, 2026, bearing interest at SOFR plus a margin ranging from 100 basis points to 150 bps.

The margin is determined by the company’s consolidated net leverage ratio.

In addition to serving as administrative agent for the term facility, JPMorgan is also a joint lead arranger and joint bookrunner along with U.S. Bank NA, the syndication agent.

TD Bank, NA and Bank of America, NA are also acting as joint lead arrangers, further serving as co-documentation agents with Unicredit Bank, AG.

The original revolving agreement was dated April 18, 2017 and has been amended and restated three times.

The maturity date was pushed out to July 11, 2028 from Aug. 20, 2026.

The facility interest basis was also updated to reflect the current market approach for a multicurrency facility. Borrowings will bear currency-appropriate interest at SOFR, CDOR, Euribor, Sonia, Saron or Tibor plus a margin ranging from 69 bps to 107.5 bps. There is also a facility fee that ranges from 6 bps to 17.5 bps.

As with the new term loan, the margins and facility fee for the revolver are determined by the company’s consolidated net leverage ratio.

JPMorgan and U.S. Bank are also the joint lead arrangers and joint bookrunners for the revolver.

The syndication agent is U.S. Bank.

TD Bank, Bank of America and Unicredit are the co-documentation agents alongside Bank of New York Mellon, ING Bank, NV and HSBC Bank USA, NA.

Proceeds from the new term loan and the amended and restated revolver will be used for working capital and general corporate purposes, including, but not limited to, capital expenditures, repurchasing of capital stock, permitted refinancing of existing debt and for funding potential acquisitions.

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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