HENRY SCHEIN INCHSIC
HENRY SCHEIN INC Debt Disclosure
Note 14 – Debt
Bank Credit Lines
Bank credit lines consisted of the following:
December 27,
December 28,
2025
2024
Revolving credit agreement
$
100
$
-
Other short-term bank credit lines
664
650
Total
$
764
$
650
Revolving Credit Agreement
On
August 20, 2021
, we entered into a $
1.0
which was amended and restated on
July 11, 2023
July 11, 2028
interest rate provisions to reflect the current market approach for a multicurrency facility. On June 6, 2025, we
amended and restated the Revolving Credit Agreement to, among other things, modify certain financial definitions
and covenants. The interest rate on this revolving credit facility is based on Term Secured Overnight Financing
Rate (“
Term SOFR
”) plus a spread based on our leverage ratio at the end of each financial reporting quarter. As of
December 27, 2025 the interest rate on this revolving credit facility was
3.78
% plus
1.08
% for a combined rate of
4.86
%. As of December 28, 2024 the interest rate on this revolving credit facility was
4.45
% plus
1.18
% for a
combined rate of
5.63
%.
The Revolving Credit Agreement requires, among other things, that we maintain certain maximum leverage ratios.
Additionally, the Revolving Credit Agreement contains customary representations, warranties and affirmative
covenants as well as customary negative covenants, subject to negotiated exceptions, on liens, indebtedness,
significant corporate changes (including mergers), dispositions and certain restrictive agreements. As of December
27, 2025 and December 28, 2024, we had $
100
0
revolving credit facility. During the year ended December 27, 2025, the average outstanding balance under the
Revolving Credit Agreement was approximately $
203
there were $
10
11
Revolving Credit Agreement.
Other Short-Term Bank Credit Lines
As of December 27, 2025 and December 28, 2024, we had various other short-term bank credit lines available, in
various currencies, with a maximum borrowing capacity of $
787
790
December 27, 2025 and December 28, 2024, $
664
650
During the year ended December 27, 2025, the average outstanding balances under our various other short-term
bank credit lines was approximately $
680
under other short-term bank credit lines had weighted average interest rates of
4.68
% and
5.35
%, respectively.
Long-term debt
Long-term debt consisted of the following:
December 27,
December 28,
2025
2024
Private placement facilities
$
1,149
$
975
Term loan
749
712
U.S. trade accounts receivable securitization
390
150
Various collateralized and uncollateralized loans payable with interest,
in varying installments through 2031 at interest rates
from
0.00
% to
6.75
% at December 27, 2025 and
from
0.00
% to
9.42
% at December 28, 2024
48
43
Finance lease obligations
7
6
Total
2,343
1,886
Less current maturities
(33)
(56)
Total long-term debt
$
2,310
$
1,830
As of December 27, 2025, the aggregate amounts of long-term debt, including finance lease obligations and net of
deferred debt issuance costs, maturing in each of the next five years and thereafter are as follows:
2026
$
33
2027
534
2028
221
2029
143
2030
810
Thereafter
602
Total
$
2,343
Private Placement Facilities
Our private placement facilities provided by
four
1.5
and are available on an uncommitted basis at fixed rate economic terms to be agreed upon at the time of issuance,
from time to time through
December 19, 2028
. The facilities allow us to issue senior promissory notes to the
lenders at a fixed rate based on an agreed upon spread over applicable treasury notes at the time of issuance. The
term of each possible issuance will be selected by us and can range from
five
15 years
longer than
12 years
). The proceeds of any issuances under the facilities will be used for general corporate
purposes, including working capital and capital expenditures, to refinance existing indebtedness, and/or to fund
potential acquisitions. On December 19, 2025, we amended and restated our private placement facilities to, among
other things, (i) extend the scheduled facility termination dates to
December 19, 2028
financial definitions and covenants. The agreements provide, among other things, that we maintain certain
maximum leverage ratios, and contain restrictions relating to subsidiary indebtedness, liens, affiliate transactions,
disposal of assets and certain changes in ownership. These facilities contain make-whole provisions in the event
that we pay off the facilities prior to the applicable due dates.
The components of our private placement facility borrowings as of December 27, 2025, which have a weighted
average interest rate of
3.93
% are presented in the following table:
Amount of
Date of
Borrowing
Borrowing
Borrowing
Outstanding
Rate
Due Date
June 16, 2017
$
100
3.42
%
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
May 4, 2023
75
4.79
May 4, 2028
May 4, 2023
75
4.84
May 4, 2030
May 4, 2023
75
4.96
May 4, 2033
May 4, 2023
150
4.94
May 4, 2033
December 15, 2025
100
5.23
December 15, 2032
December 15, 2025
75
5.28
December 15, 2032
Less: Deferred debt issuance costs
(1)
Total
$
1,149
The components of our private placement facility borrowings as of December 28, 2024, which have a weighted
average interest rate of
3.70
% are presented in the following table:
Amount of
Date of
Borrowing
Borrowing
Borrowing
Outstanding
Rate
Due Date
June 16, 2017
$
100
3.42
%
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
May 4, 2023
75
4.79
May 4, 2028
May 4, 2023
75
4.84
May 4, 2030
May 4, 2023
75
4.96
May 4, 2033
May 4, 2023
150
4.94
May 4, 2033
Total
$
975
Term Loan
On July 11, 2023, we entered into a
three-year
750
Agreement”), which was originally scheduled to mature on
July 11, 2026
. On June 6, 2025, this agreement was
amended and restated to, among other things, (i) extend the maturity date to
June 6, 2030
, and (ii) modify certain
financial definitions and covenants. The interest rate on this term loan is based on the
Term SOFR
based on our leverage ratio at the end of each financial reporting quarter. Beginning in June 2026 and continuing
through June 2027, we are required to make quarterly payments of $
5
payment amount increases to $
9
2030. As of December 27, 2025, the borrowings outstanding under this term loan were $
749
27, 2025, the interest rate under the Term Credit Agreement was
3.76
% plus
1.25
% for a combined rate of
5.01
%.
As of December 28, 2024, the borrowings outstanding under this term loan were $
712
2024, the interest rate under the Term Credit Agreement was
4.45
% plus
1.60
% for a combined rate of
6.05
%.
However, at December 28, 2024, we had a hedge in place creating an effective fixed rate of
6.04
%. After renewing
the Term Credit Agreement in June of 2025, our hedged portion of the Term Credit Agreement is now
approximately
90
% of the notional total. As of December 27, 2025, the effective fixed rate was
5.69
% and the
floating rate was
5.01
%, resulting in a weighted average rate of
5.62
%. The Term Credit Agreement requires,
among other things, that we maintain certain maximum leverage ratios. Additionally, the Term Credit Agreement
contains customary representations, warranties and affirmative covenants as well as customary negative covenants,
subject to negotiated exceptions, on liens, indebtedness, significant corporate changes (including mergers),
dispositions and certain restrictive agreements.
U.S. Trade Accounts Receivable Securitization
We have a facility agreement based on our U.S. trade accounts receivable that is structured as an asset-backed
securitization program with pricing committed for up to
three years
. On December 6, 2024, we extended the
expiration date of this facility agreement to
December 6, 2027
December 15, 2025
).
This facility agreement has a purchase limit of $
450
two
As of December 27, 2025 and December 28, 2024, the borrowings outstanding under this securitization facility
were $
390
150
this facility was based on the
asset-backed commercial paper rate
4.06
% plus
0.75
%, for a combined rate of
4.81
%. At December 28, 2024, the interest rate on borrowings under this facility was based on the asset-backed
commercial paper rate of
4.73
% plus
0.75
%, for a combined rate of
5.48
%.
If our accounts receivable collection pattern changes due to customers either paying late or not making payments,
our ability to borrow under this facility may be reduced.
We are required to pay a commitment fee of
30
35
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 10, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.