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JP Morgan Securities, U.S. Bank Arrange $700MM in New Capital for Henry Schein

April 21, 2020, 09:15 AM
Filed Under: Healthcare

Henry Schein, Inc., the world’s largest provider of health care solutions to office-based dental and medical professionals, 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.”

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