The filing expands financing capacity, not current cash. Cardinal added a delayed-draw term loan commitment of up to $250 million, available in as many as five advances through March 10, 2028, while increasing the revolver from $75 million to $100 million. 〔0〕
| Facility / metric | Filing detail |
|---|---|
| Revolving commitment | $100 million, up from $75 million (Credit Agreement — Section 2.1) |
| Delayed-draw commitment | Up to $250 million (Credit Agreement — Section 2.27) |
| Existing Term Loan A outstanding | $195 million (Credit Agreement — Section 2.5) |
| Minimum liquidity for a DDTL draw | $50 million (Conditions to Specified Credit Events — Section 3.3) |
| Maximum leverage for a DDTL draw | 2.25x net leverage (Section 3.3) |
The practical benefit is optional acquisition funding. The DDTL proceeds are restricted to financing permitted acquisitions and related fees, so the facility gives Cardinal dry powder for expansion without immediately issuing equity or drawing the full amount. The revolver increase separately improves working-capital flexibility. 〔1〕
The trade-off is higher potential leverage, not an immediate leverage shock. The filing does not say Cardinal borrowed the $250 million or the additional $25 million of revolver capacity; it establishes commitments. Any future DDTL draw must preserve at least $50 million of liquidity and keep pro forma net leverage at or below 2.25x, which suggests lenders are underwriting additional acquisition debt but with meaningful guardrails. 〔2〕
Versus expectations, this is best read as mixed rather than a clean positive. No published operating consensus is relevant to this financing amendment, and the filing gives no evidence of immediate proceeds, an acquisition, or reduced borrowing costs. The upside is materially greater capacity; the downside is that Cardinal is preparing to support more acquisitions and potentially more debt on top of $195 million of existing Term Loan A. 〔3〕
Read the original 8-K on SEC EDGAR ↗