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Long-Term Obligations and Other Short-Term Borrowings | 6 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Long-Term Obligations and Other Short-Term Borrowings | 6. Long-Term Obligations and Other Short-Term Borrowings The following table summarizes long-term obligations and other short-term borrowings at:
(in millions) (1) | December 31, 2024 |  | June 30, 2024
3.5% Notes due 2024 | $ | — |  |  | $ | 401 |
3.75% Notes due 2025 | 504 |  |  | 507 |
4.7% Notes due 2026 | 497 |  |  | — |
3.41% Notes due 2027 | 1,198 |  |  | 1,191 |
5.125% Notes due 2029 | 645 |  |  | 644 |
5.0% Notes due 2029 | 744 |  |  | — |
5.45% Notes due 2034 | 492 |  |  | 491 |
5.35% Notes due 2034 | 989 |  |  | — |
4.6% Notes due 2043 | 314 |  |  | 308 |
4.5% Notes due 2044 | 332 |  |  | 330 |
4.9% Notes due 2045 | 426 |  |  | 423 |
4.368% Notes due 2047 | 563 |  |  | 563 |
5.75% Notes due 2054 | 641 |  |  | — |
7.0% Debentures due 2026 | 124 |  |  | 124 |
Other Obligations | 137 |  |  | 110 |
Total | 7,606 |  |  | 5,092 |
Less: current portion of long-term obligations and other short-term borrowings | 544 |  |  | 434 |
Long-term obligations, less current portion | $ | 7,062 |  |  | $ | 4,658 |
(1) Maturities are presented on a calendar year basis. Maturities of existing long-term obligations and other short-term borrowings for the remainder of fiscal 2025 through fiscal 2029 and thereafter are as follows: $24 million, $545 million, $1.9 billion, $21 million, $658 million and $4.5 billion. Long-Term Debt We had total long-term obligations, including the current portion and other short-term borrowings, of $7.6 billion and $5.1 billion at December 31, 2024 and June 30, 2024, respectively. All the notes represent unsecured obligations of Cardinal Health, Inc. and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. Interest is paid pursuant to the terms of the obligations. These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $31.3 billion and $31.8 billion at December 31, 2024 and June 30, 2024, respectively. In November 2024, we issued additional debt, with the aggregate principal amount of $2.9 billion, to fund a portion of the consideration payable in connection with the GIA and ADSG acquisitions and for general purposes. The notes issued are $500 million aggregate principal amount of 4.7% Notes that mature on November 15, 2026, $750 million aggregate principal amount of 5.0% Notes that mature on November 15, 2029, $1.0 billion aggregate principal amount of 5.35% Notes that mature on November 15, 2034, and $650 million aggregate principal amount of 5.75% Notes that mature on November 15, 2054. The proceeds of the notes issued, net of discounts, premiums, and debt issuance costs, were $2.9 billion. During the three months ended December 31, 2024, we repaid the full principal of $400 million of the 3.5% Notes due 2024 at maturity with proceeds from the debt issuance in fiscal 2024, $200 million of which were invested in short-term time deposits and classified as prepaid expenses and other in our condensed consolidated balance sheets at June 30, 2024. If we undergo a change of control, as defined in the notes, and if the notes receive specified ratings below investment grade by each of Standard & Poor's Ratings Services, Moody's Investors Services, and Fitch Ratings, any holder of the notes, excluding the debentures, can require with respect to the notes owned by such holder, or we can offer, to repurchase the notes at 101% of the principal amount plus accrued and unpaid interest. Other Financing Arrangements In addition to cash and equivalents and operating cash flow, other sources of liquidity include a $3.0 billion commercial paper program backed by a $2.0 billion revolving credit facility and a $1 billion 364-Day revolving credit facility that expires in October 2025. We also have a $1.0 billion committed receivables sales facility. At December 31, 2024, we had no amounts outstanding under our commercial paper program, revolving credit facilities or our committed receivables sales facility. On December 5, 2024, we entered into a term loan credit agreement that, among other things, provides commitments for a term loan facility in an aggregate amount of $1.0 billion until the earliest of (a) the occurrence of both termination dates contemplated by (i) the agreement for the acquisition of a majority of the outstanding equity interest of GIA and (ii) the agreement for our proposed acquisition of ADSG, (b) the closing of both the GIA and ADSG transactions without the funding of the loans, and (c) November 10, 2025. See Note 2 for more details on the proposed acquisitions. Once borrowed, loans under this term loan credit agreement will mature three years after the date of borrowing, which may be accelerated pursuant to certain conditions specified in the credit agreement. Interest rates on borrowings will be based on prevailing interest rates, benchmarked based on Term SOFR and subject to our credit ratings. In November 2024, we also obtained a commitment letter from a financial institution for a $2.9 billion unsecured bridge term loan facility that could have been used to complete the acquisition of GIA. We incurred fees related to the facility, which are included in interest expense, net. The unsecured bridge term loan facility was never entered into and we terminated the commitment letter on November 22, 2024. Our term loan credit agreement, revolving credit, and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of December 31, 2024, we were in compliance with this financial covenant.

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