Summary
AmerisourceBergen Corporation (now Cencora, Inc.) filed an 8-K on January 16, 2013, to report a material definitive agreement. Specifically, the company entered into a Fourth Amendment to its Amended and Restated Receivables Purchase Agreement. This amendment primarily changes the administrator of its securitization facility from Bank of America to The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch. This facility is crucial for AmerisourceBergen's liquidity, providing funding for its ongoing business operations through the securitization of accounts receivable from its subsidiary, AmerisourceBergen Drug Corporation. The facility has a base limit of $700 million, with an option to increase it by an additional $250 million for seasonal needs, demonstrating the company's commitment to maintaining robust funding for its operations. The change in administrator is a key operational update for investors to note.
Key Highlights
- 1AmerisourceBergen Corporation announced a Fourth Amendment to its Amended and Restated Receivables Purchase Agreement.
- 2The primary change under this amendment is the appointment of The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch as the new administrator for the securitization facility, replacing Bank of America.
- 3The securitization facility is a key source of liquidity and funding for the company's ongoing business needs.
- 4The facility is based on accounts receivables originated by AmerisourceBergen Drug Corporation for pharmaceutical sales and related services.
- 5The securitization facility has a base limit of $700 million.
- 6There is an option to increase the facility's capacity by an additional $250 million for seasonal demands in the December and March quarters, subject to bank approval.