8-KMaterial AgreementsExhibits & Filings

Cencora, Inc. 8-K Report, Material Agreement (Jul 3, 2013)

Filed July 3, 2013For Securities:COR

Summary

This 8-K filing from AmerisourceBergen Corporation (now Cencora, Inc.) on July 3, 2013, details a significant amendment to its securitization facility. Specifically, the company entered into a Fifth Amendment to its Amended and Restated Receivables Purchase Agreement, increasing the base limit of its securitization facility from $700 million to $950 million. This facility is crucial for providing ongoing liquidity and funding for the business operations of AmerisourceBergen and its subsidiaries, backed by accounts receivables from pharmaceutical sales and related services. The increased facility limit is a positive development for the company's financial flexibility. It enhances AmerisourceBergen's ability to manage its working capital needs and ensures access to funds for its ongoing business operations, particularly through the sale of accounts receivables. The amendment also includes technical changes and maintains an option to increase the facility by an additional $250 million for seasonal needs, demonstrating a proactive approach to managing its financial resources.

Key Highlights

  • 1AmerisourceBergen Corporation entered into a Fifth Amendment to its Amended and Restated Receivables Purchase Agreement on June 28, 2013.
  • 2The base limit of the company's securitization facility was increased from $700 million to $950 million.
  • 3This facility provides essential liquidity and funding for ongoing business needs.
  • 4The securitization is based on accounts receivables generated by AmerisourceBergen Drug Corporation (ABDC) from pharmaceutical sales and related services.
  • 5ABDC sells its accounts receivables to AmeriSource Receivables Financial Corporation (ARFC), which then sells interests to purchasers.
  • 6The amendment includes certain technical changes to the facility agreement.
  • 7There is an option to increase the facility by an additional $250 million for seasonal needs during specific quarters, subject to bank approval.

Frequently Asked Questions

The primary purpose of the securitization facility is to provide additional liquidity and funding for the ongoing business needs of AmerisourceBergen Corporation and its subsidiaries. It is backed by the company's accounts receivables, primarily from the sale of pharmaceuticals and related services.

The amendment significantly enhances the company's financial flexibility by increasing the base limit of the securitization facility from $700 million to $950 million. This provides greater access to capital for working capital management and operational funding.

AmerisourceBergen Drug Corporation (ABDC) acts as the servicer and originator of the accounts receivables. ABDC sells these receivables to AmeriSource Receivables Financial Corporation (ARFC), which then facilitates the sale of interests in these receivables to various purchaser groups.

Yes, the agreement includes an option to increase the commitments of the participating banks by an additional $250 million for seasonal needs during the December and March quarters, subject to the banks' approval.