Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) announced on May 4, 2010, the renewal of its $700 million accounts receivable securitization facility. This renewal extends the facility's term by an additional year, now expiring on April 28, 2011. The facility is crucial for providing ongoing liquidity and funding for the company's operational needs and those of its subsidiaries. The securitization program is backed by accounts receivables generated from the sale of pharmaceuticals and related services. The facility allows AmerisourceBergen to sell its receivables to a special purpose entity, which then can sell interests in these receivables to various purchasing groups, thereby generating cash. The renewal ensures continued access to this vital funding source, which is a common and important mechanism for companies in the pharmaceutical distribution industry to manage working capital efficiently.
Key Highlights
- 1Renewal of a $700 million accounts receivable securitization facility.
- 2Facility term extended by one additional year, now expiring on April 28, 2011.
- 3The facility provides essential liquidity and funding for ongoing business operations.
- 4The program is based on accounts receivables from pharmaceutical sales and related services.
- 5Includes an option to increase the facility by an additional $250 million for seasonal needs, subject to bank approval.
- 6Bank of America, National Association, serves as the administrator for the facility.