XML 29 R13.htm IDEA: XBRL DOCUMENT v3.25.1
Long-Term Obligations and Other Short-Term Borrowings
 9 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Obligations and Other Short-Term Borrowings
6. Long-Term Obligations and Other Short-Term Borrowings
The following table summarizes long-term obligations and other short-term borrowings at:
(in millions) (1)March 31, 2025June 30, 2024
3.5% Notes due 2024$— $401 
3.75% Notes due 2025503 507 
4.7% Notes due 2026497 — 
3.41% Notes due 20271,205 1,191 
5.125% Notes due 2029645 644 
5.0% Notes due 2029744 — 
5.45% Notes due 2034499 491 
5.35% Notes due 2034989 — 
4.6% Notes due 2043322 308 
4.5% Notes due 2044335 330 
4.9% Notes due 2045435 423 
4.368% Notes due 2047565 563 
5.75% Notes due 2054641 — 
7.0% Debentures due 2026124 124 
Other Obligations175 110 
Total7,679 5,092 
Less: current portion of long-term obligations and other short-term borrowings543 434 
Long-term obligations, less current portion$7,136 $4,658 
(1)    Maturities are presented on a calendar year basis.
Maturities of existing long-term obligations and other short-term borrowings for the remainder of fiscal 2025 through fiscal 2029 and thereafter are as follows: $12 million, $548 million, $1.9 billion, $27 million, $663 million and $4.6 billion.
Long-Term Debt
We had total long-term obligations, including the current portion and other short-term borrowings, of $7.7 billion and $5.1 billion at March 31, 2025 and June 30, 2024, respectively. All the notes represent unsecured obligations of Cardinal Health, Inc. and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. Interest is paid pursuant to the terms of the obligations. These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $32.8 billion and $31.8 billion at March 31, 2025 and June 30, 2024, respectively.
In November 2024, we issued additional debt, with the aggregate principal amount of $2.9 billion, to fund a portion of the consideration payable in connection with the GIA and ADSG acquisitions and for general purposes. The notes issued are $500 million aggregate principal amount of 4.7% Notes that mature on November 15, 2026, $750 million aggregate principal amount of 5.0% Notes that mature on November 15, 2029, $1.0 billion aggregate principal amount of 5.35% Notes that mature on November 15, 2034, and $650 million aggregate principal amount of 5.75% Notes that mature on November 15, 2054. The proceeds of the notes issued, net of discounts, premiums, and debt issuance costs, were $2.9 billion.
During the three months ended December 31, 2024, we repaid the full principal of $400 million of the 3.5% Notes due 2024 at maturity with proceeds from the debt issuance in fiscal 2024, $200 million of which were invested in short-term time deposits and classified as prepaid expenses and other in our condensed consolidated balance sheets at June 30, 2024. As of March 31, 2025, all short-term time deposits related to the debt issuance in fiscal 2024 have matured.
If we undergo a change of control, as defined in the notes, and if the notes receive specified ratings below investment grade by each of Standard & Poor's Ratings Services, Moody's Investors Services, and Fitch Ratings, any holder of the notes, excluding the debentures, can require with respect to the notes owned by such holder, or we can offer, to repurchase the notes at 101% of the principal amount plus accrued and unpaid interest.
Other Financing Arrangements
In addition to cash and equivalents and operating cash flow, other sources of liquidity include a $3.0 billion commercial paper program backed by a $2.0 billion revolving credit facility and a $1.0 billion 364-Day revolving credit facility that expires in October 2025. We also have a $1.0 billion committed receivables sales facility. At March 31, 2025, we had no amounts outstanding under our commercial paper program, revolving credit facilities or our committed receivables sales facility.
On December 5, 2024, we entered into a term loan credit agreement that, among other things, provides commitments for a term loan facility in an aggregate amount of up to $1.0 billion. No amounts were borrowed from this agreement as of March 31, 2025. However, on April 1, 2025, we closed on our acquisition of ADSG and borrowed $800 million under this term loan facility. The loan provided under this term loan credit agreement will mature three years from the date of borrowing and allows for prepayment, which may be accelerated pursuant to certain conditions specified in the credit agreement. Interest rates on borrowings will be based on prevailing interest rates, benchmarked based on Term SOFR and subject to our credit ratings.
In November 2024, we also obtained a commitment letter from a financial institution for a $2.9 billion unsecured bridge term loan facility that could have been used to complete the acquisition of GIA. We incurred fees related to the facility, which are included in interest expense, net. The unsecured bridge term loan facility was never entered into and we terminated the commitment letter on November 22, 2024.
Our term loan credit agreement, revolving credit, and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of March 31, 2025, we were in compliance with this financial covenant.