On October 14, 2009, Hospira, Inc. (the "Company") entered into a Credit Agreement and Guaranty (the "Credit Agreement") with a group of lenders identified in the Credit Agreement, including Citibank, N.A., as Administrative Agent. The Credit Agreement is included as Exhibit 10.1 and is hereby incorporated by reference into this Item 1.01. The description herein is qualified in its entirety by the Credit Agreement. Under the Credit Agreement, the initial aggregate amount of the lenders' commitments is $700,000,000, and the Company may, at its option, seek to increase the total commitments from time to time by an aggregate amount of up to $125,000,000 (resulting in maximum total commitments of $825,000,000).

The Credit Agreement replaces the $375,000,000 revolving credit agreement, dated as of December 16, 2005, and amended as of January 15, 2007, which was attached as Exhibit 10.16 to the Company's Annual Report on Form 10-K for the year ended December 31, 2006. The Company did not incur any penalties in connection with the termination of the previous credit agreement. Except as described herein, the Credit Agreement is substantially similar to the Company's previous credit agreement.

The Credit Agreement permits loans to the Company and, subject to specified criteria, foreign subsidiaries of the Company. The Credit Agreement also permits the issuance of letters of credit on behalf of the Company. The Credit Agreement is unsecured and repayable on maturity in October of 2012. If there are any borrowings by Company subsidiaries, those borrowings will be guaranteed by the Company.

Loans under the Credit Agreement bear interest at either LIBOR or a base rate plus, in each case, a spread determined by the Company's credit rating. In addition, the Company is required to pay certain fees under the Credit Agreement, including facility fees and letter of credit fees.

The Credit Agreement contains customary covenants, including covenants limiting liens, subsidiary indebtedness, substantial assets sales and mergers. Most of these restrictions are subject to thresholds and exceptions. The Credit Agreement also contains financial covenants that require the Company to maintain a minimum interest coverage ratio of at least 5:1, and a maximum leverage ratio of 3.25:1. The Credit Agreement has customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, and cross-default to other debt agreements.

Hospira had no outstanding borrowings under its previous credit agreement, and has no borrowings under the Credit Agreement.

The disclosure included in Item 1.01 hereof is incorporated by reference into this Item 1.02.

The disclosure included in Item 1.01 hereof is incorporated by reference into this Item 2.03.

(d) Exhibits

Exhibit No.                                    Exhibit

10.1            Credit Agreement and Guaranty, dated October 14, 2009, between
                Hospira and the Lenders and Agents named therein.