Business Context and Reporting Period
This Form 8-K Current Report was filed by Henry Schein, Inc. on September 5, 2008. The filing discloses the entry into a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, or liquidity metrics. The primary financial data point disclosed is the restructuring of the company's revolving credit facility:
- New Facility Amount: $400 million
- Previous Facility Amount: $300 million
- New Maturity Date: September 2013
- Previous Maturity Date: May 2010
- Lead Arranger: JPMorgan Securities, Inc.
Material Changes
Henry Schein, Inc. replaced its existing $300 million revolving credit facility with a new $400 million facility. This change increases the total available credit by $100 million and extends the maturity date by approximately three and a half years.
Outlook and Management Commentary
Management intends to utilize the new credit facility for general corporate purposes, specifically including:
- Working capital requirements
- Capital expenditures
- Funding potential acquisitions
A press release detailing this announcement was issued on September 8, 2008, and is attached as Exhibit 99.1.
Investor Verification Checklist
- Verify the specific interest rate terms and fees associated with the new $400 million facility.
- Confirm the status of the previous $300 million facility and any prepayment penalties incurred.
- Review the full text of the press release (Exhibit 99.1) for additional covenants or conditions.
- Assess the company's current leverage ratio in light of the increased credit availability.