8-KMaterial AgreementsExhibits & Filings

Cencora, Inc. 8-K Report, Material Agreement (Nov 21, 2012)

Filed November 21, 2012For Securities:COR

Summary

This 8-K filing from AmerisourceBergen Corporation (now Cencora, Inc.) on November 21, 2012, reports a material definitive agreement concerning a $700 million accounts receivable securitization facility. Specifically, the company entered into a Third Amendment to its Amended and Restated Receivables Purchase Agreement, extending the maturity date of this facility to November 16, 2015. This extension is crucial for maintaining ongoing liquidity and funding for AmerisourceBergen's business operations and subsidiaries. The facility is backed by accounts receivables from pharmaceutical sales and related services, with AmerisourceBergen Drug Corporation acting as the originator and servicer, and Amerisource Receivables Financial Corporation as the seller. The agreement also allows for a potential increase in the facility by an additional $250 million to accommodate seasonal demands, underscoring the company's proactive approach to managing its working capital and financial flexibility.

Key Highlights

  • 1Extended maturity date of the $700 million accounts receivable securitization facility to November 16, 2015.
  • 2The facility is designed to provide ongoing liquidity and funding for the company's business needs.
  • 3The securitization is based on accounts receivables generated by AmerisourceBergen Drug Corporation (ABDC) from pharmaceutical sales.
  • 4AmerisourceBergen Corporation acts as a performance guarantor for ABDC's obligations under the agreement.
  • 5The facility includes an option to increase commitments by an additional $250 million for seasonal needs during December and March quarters.
  • 6Bank of America, National Association, continues to serve as the administrator for the facility.

Frequently Asked Questions

The primary purpose is to extend the maturity date of AmerisourceBergen's $700 million accounts receivable securitization facility to November 16, 2015. This extension ensures continued access to liquidity and funding for the company's ongoing business operations.

The facility provides a significant source of funding by allowing the company to sell its accounts receivables to a special purpose entity (ARFC), which then sells interests in these receivables to purchasing groups. This helps manage cash flow and provides working capital for its pharmaceutical distribution business.

Yes, the agreement includes an option to increase the commitments from participating banks by an additional $250 million. This is specifically designed to accommodate seasonal fluctuations in business needs, particularly during the December and March quarters.

The key parties are AmerisourceBergen Corporation (the Registrant and guarantor), Amerisource Receivables Financial Corporation (ARFC) as Seller, AmerisourceBergen Drug Corporation (ABDC) as Servicer, the Purchasing Agents and Purchasers, and Bank of America, National Association, as Administrator.