Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on May 1, 2009, detailing the Ninth Amendment to its accounts receivable securitization facility. The amendment, effective April 30, 2009, extended the facility's maturity date to April 29, 2010, and reduced its base size from $975 million to $700 million. While the base size was reduced, the facility retains an accordion feature allowing for an increase up to $950 million for seasonal demands during specific quarters, subject to lender approval. Notably, the average cost of this securitization facility was increased due to prevailing market conditions. Investors should note that this amendment impacts the company's access to short-term funding through receivables, with a slightly higher cost of capital. The company has incorporated this information by reference into the filing, indicating its significance regarding financial obligations.
Key Highlights
- 1Ninth Amendment to accounts receivable securitization facility became effective on April 30, 2009.
- 2Maturity date of the securitization facility extended to April 29, 2010.
- 3Base size of the securitization facility reduced from $975 million to $700 million.
- 4Facility retains an accordion feature to increase commitments up to $950 million for seasonal needs.
- 5Average cost of the securitization facility increased due to current market conditions.
- 6Bank of America, National Association, continues as the administrator of the facility.