8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMPHENOL CORP /DE/ 8-K Report, Material Agreement (Oct 21, 2013)

Filed October 21, 2013For Securities:APH

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.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Amphenol Corporation's entry into a new material definitive agreement, specifically a $100 million credit facility, and to signal the termination of its existing Receivables Securitization Facility.

The new credit facility is an uncommitted and unsecured line of credit for $100 million. It allows Amphenol to borrow funds at a spread over LIBOR and is renewable annually.

While the filing doesn't explicitly state the reasons, the replacement suggests a strategic shift by Amphenol towards a more direct and potentially simpler unsecured borrowing method, moving away from the securitization of its receivables.

This change primarily affects how Amphenol accesses short-term liquidity. The new credit facility is a direct obligation, while the previous securitization facility involved selling receivables. Investors should monitor the cost of borrowing under the new facility and ensure it remains favorable.