8-KMaterial AgreementsExhibits & Filings

Cencora, Inc. 8-K Report, Material Agreement (Oct 10, 2013)

Filed October 10, 2013For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on October 10, 2013, to report a material definitive agreement. Specifically, the company entered into a Sixth Amendment to its Amended and Restated Receivables Purchase Agreement on October 7, 2013. This amendment involves a significant change in a securitization facility designed to provide liquidity and funding for the company's ongoing business needs through its accounts receivables. The key change involves PNC Bank, National Association, assuming the role of an uncommitted purchaser by acquiring rights and obligations from Market Street Funding LLC. This securitization facility, based on accounts receivables from AmerisourceBergen Drug Corporation (ABDC), has a base limit of $950 million and includes an option to increase by an additional $250 million for seasonal needs. Cencora guarantees the performance of ABDC's obligations.

Key Highlights

  • 1AmerisourceBergen Corporation (now Cencora, Inc.) entered into a Sixth Amendment to its Receivables Purchase Agreement on October 7, 2013.
  • 2The amendment modifies a securitization facility that provides liquidity through the sale of accounts receivables.
  • 3PNC Bank, National Association, has assumed the role of an uncommitted purchaser under the agreement.
  • 4The securitization facility has a base limit of $950 million.
  • 5There is an option to increase the facility by an additional $250 million to support seasonal demand.
  • 6The company's ability to access this facility is crucial for its ongoing business operations and funding.
  • 7Cencora, Inc. acts as the performance guarantor for its subsidiary ABDC's obligations under the agreement.

Frequently Asked Questions

The main purpose of the Sixth Amendment to the Amended and Restated Receivables Purchase Agreement is to modify a securitization facility that provides additional liquidity and funding for Cencora, Inc.'s ongoing business needs. This is achieved by utilizing the company's accounts receivables.

The key parties include AmerisourceBergen Corporation (the Registrant), AmeriSource Receivables Financial Corporation (ARFC) as seller, AmerisourceBergen Drug Corporation (ABDC) as servicer, Market Street Funding LLC (the assignor), PNC Bank, National Association (the assignee and new uncommitted purchaser), and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as administrator.

The securitization facility has a base limit of $950 million. Additionally, there is an option to increase this limit by $250 million for seasonal needs, bringing the total potential funding to $1.2 billion, subject to participating banks' approval.

Cencora, Inc. serves as the performance guarantor for its subsidiary ABDC's obligations as originator and servicer under the securitization facility. This means Cencora is responsible if ABDC fails to meet its commitments.