Summary
Amphenol Corporation (APH) filed an 8-K report on October 21, 2013, detailing a significant update to its financing arrangements. The company entered into a new Credit Agreement with Sovereign Bank, N.A., effective October 18, 2013. This agreement establishes a $100 million uncommitted and unsecured credit facility, offering flexibility for the company to borrow funds at a spread over LIBOR, with annual renewal provisions. This new credit facility is intended to replace Amphenol's existing Receivables Securitization Facility. The company has already provided notice to terminate the prior facility, with its termination set to take effect on November 15, 2013. This strategic move signifies a shift in Amphenol's approach to short-term liquidity management, potentially favoring a more direct and unsecured borrowing structure.
Key Highlights
- 1Amphenol Corporation entered into a new $100 million uncommitted and unsecured credit facility with Sovereign Bank, N.A.
- 2The new credit facility has an effective date of October 18, 2013.
- 3Borrowing under the new facility will be at a spread over LIBOR.
- 4The credit facility is renewable annually, providing ongoing flexibility.
- 5This new facility is intended to replace the Company's existing Receivables Securitization Facility.
- 6Amphenol provided notice to terminate the Receivables Securitization Facility on September 30, 2013, effective November 15, 2013.