Company Amends and Extends $350 Million
Credit Facility and $1 Billion Private Placement Shelf
Facilities
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider
of health care solutions to office-based dental and medical
professionals, today announced the successful completion of
amendments and extensions of certain of its financing facilities,
which enhances 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.
The Company’s $1 billion private placement shelf facilities with
three leading insurance companies were also amended and extended.
These shelf facilities are uncommitted and will, subject to the
terms and conditions set forth in each, allow the Company 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,” said Steven
Paladino, Executive Vice President and Chief Financial Officer of
Henry Schein. “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.”
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for
health care professionals powered by a network of people and
technology. With more than 19,000 Team Schein Members worldwide,
the Company's network of trusted advisors provides more than 1
million customers globally with more than 300 valued solutions that
improve operational success and clinical outcomes. Our Business,
Clinical, Technology, and Supply Chain solutions help office-based
dental and medical practitioners work more efficiently so they can
provide quality care more effectively. These solutions also support
dental laboratories, government and institutional healthcare
clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated
distribution network, with a selection of more than 120,000 branded
products and Henry Schein private-brand products in stock, as well
as more than 180,000 additional products available as special-order
items.
A FORTUNE 500 Company and a member of the S&P 500® index,
Henry Schein is headquartered in Melville, N.Y., and has operations
or affiliates in 31 countries. The Company's sales from continuing
operations reached $10.0 billion in 2019, and have grown at a
compound annual rate of approximately 13 percent since Henry Schein
became a public company in 1995.
For more information, visit Henry Schein at www.henryschein.com,
Facebook.com/HenrySchein, and @HenrySchein on Twitter.
Cautionary Note Regarding Forward-Looking Statements
In accordance with the “Safe Harbor” provisions of the Private
Securities Litigation Reform Act of 1995, we provide the following
cautionary remarks regarding important factors that, among others,
could cause future results to differ materially from the
forward-looking statements, expectations and assumptions expressed
or implied herein. All forward-looking statements made by us are
subject to risks and uncertainties and are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance and achievements or industry results to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. These statements are identified by the use of such
terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,”
“estimate,” “forecast,” “project,” “anticipate,” “to be,” “to
make”, “understand or understanding” “understand,” or other
comparable terms. A full discussion of our operations and financial
condition, status of litigation matters, including factors that may
affect our business and future prospects, is contained in documents
we have filed with the United States Securities and Exchange
Commission, or SEC, and will be contained in all subsequent
periodic filings we make with the SEC. These documents identify in
detail important risk factors that could cause our actual
performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results
to differ materially from current and historical results include,
but are not limited to: effects of a highly competitive and
consolidating market; increased competition by third party online
commerce sites; our dependence on third parties for the manufacture
and supply of our products; our dependence upon sales personnel,
customers, suppliers and manufacturers; our dependence on our
senior management; fluctuations in quarterly earnings; risks from
expansion of customer purchasing power and multi-tiered costing
structures; increases in shipping costs for our products or other
service issues with our third-party shippers; general global
macro-economic conditions; risks associated with currency
fluctuations; risks associated with political and economic
uncertainty; disruptions in financial markets; volatility of the
market price of our common stock; changes in the health care
industry; implementation of health care laws; failure to comply
with regulatory requirements and data privacy laws; risks
associated with our global operations; risks associated with the
Novel Coronavirus Disease 2019 (COVID-19); risk associated with the
United Kingdom’s withdrawal from the European Union; transitional
challenges associated with acquisitions, dispositions and joint
ventures, including the failure to achieve anticipated
synergies/benefits; financial and tax risks associated with
acquisitions, dispositions and joint ventures; litigation risks;
new or unanticipated litigation developments and the status of
litigation matters; the dependence on our continued product
development, technical support and successful marketing in the
technology segment; our dependence on third parties for certain
technologically advanced components; risks from disruption to our
information systems; cyberattacks or other privacy or data security
breaches; certain provisions in our governing documents that may
discourage third-party acquisitions of us; and changes in tax
legislation. The order in which these factors appear should not be
construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that
many of these factors are beyond our ability to control or predict.
Accordingly, any forward-looking statements contained herein should
not be relied upon as a prediction of actual results. We undertake
no duty and have no obligation to update forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200625005381/en/
Investors Steven Paladino Executive Vice President and
Chief Financial Officer steven.paladino@henryschein.com (631)
843-5500
Carolynne Borders Vice President, Investor Relations
carolynne.borders@henryschein.com (631) 390-8105
Media Ann Marie Gothard, Vice President, Global Corporate
Media Relations Annmarie.gothard@henryschein.com (631) 390-8169
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