Cardinal Health plans $1.3 billion of new notes to fund acquisition

By Angela McDaniels

Tacoma, Wash., Feb. 14 - Cardinal Health, Inc. will finance its acquisition of AssuraMed Holding Inc. with a combination of $1.3 billion of new senior notes and the remainder in cash, according to a company news release.

The company will pay $2.07 billion, or $1.94 billion net of the present value of tax benefits.

Cardinal Health also obtained a commitment letter from BofA Merrill Lynch for a new $1.3 billion senior bridge term loan in connection with the acquisition, which is expected to close by early April.

Cardinal Health is based in Dublin, Ohio, and provides health-care services. Based in Twinsburg, Ohio, AssuraMed is a mail-order, direct-to-customer provider of disposable medical products to chronic disease patients.

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