Henry Schein completed amendments and extensions of certain of its financing facilities in order to enhance the company’s liquidity and financial flexibility.
Henry Schein amended and extended its existing $350 million facility with a bank, based on the securitization of its accounts receivable. The maturity of the facility was extended to June 2023 and, according to an 8K filed with the SEC, JPMorgan Chase Bank is serving as administrative agent for the facility.
According to the same 8K, Henry Schein also amended and extended its $1 billion private placement shelf facilities with Prudential, New York Life and MetLife. These shelf facilities are uncommitted and will, subject to the terms and conditions set forth in each, allow Henry Schein to issue senior promissory notes to the lenders at fixed rate terms to be agreed upon at the time of issuance during a three-year period through June 2023.
The amendment to these facilities most notably includes 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.
“The amendments and extensions of these facilities, along with the $700M financing announced on April 20, 2020, increases our financial flexibility in a challenging global economy,” Steven Paladino, executive vice president and CFO of Henry Schein, said. “These facilities support our efforts to navigate the challenges related to the COVID-19 pandemic while also helping to position Henry Schein for future growth and success.”
Henry Schein is a provider of healthcare solutions to office-based dental and medical professionals.