Cardinal Health (CAH) plans to sell bonds in the US investment-grade primary market today to help finance its $1.9 billion acquisition of Solaris Health, Bloomberg reported Wednesday, citing a person familiar with the situation.
The company is marketing dollar-denominated five-year and 10-year senior unsecured notes, the person told Bloomberg, adding that the longest tranche, a 10-year security, may yield about 1.25 percentage points above comparable US Treasuries.
Proceeds from the bond sale will fund a portion of the Solaris Health acquisition, the report said.
The bonds are expected to be rated Baa2 by Moody's and BBB by S&P and Fitch, and include a special mandatory redemption clause if the deal falls through, Bloomberg said.
Cardinal Health didn't immediately reply to a request for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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