8-KOther Events

Cencora, Inc. 8-K Report, Corporate Update (Apr 10, 2014)

Filed April 10, 2014For Securities:COR

Summary

This 8-K filing from AmerisourceBergen Corporation (now Cencora, Inc.) on April 10, 2014, reports a material amendment to its line of credit. The company entered into a First Amendment to its Line of Credit Note with Citizens Bank of Pennsylvania, significantly increasing its uncommitted, unsecured line of credit. This expansion of credit facility from $45,000,000 to $75,000,000 provides AmerisourceBergen with greater financial flexibility for short-term borrowing needs. The amendment also clarifies repayment terms, requiring repayment within 30 days of a loan advance, and outlines standard events of default and remedies available to the bank. While this is an uncommitted facility, meaning the bank's approval is discretionary for each borrowing, the increased capacity suggests management's anticipation of or preparedness for potential short-term funding requirements.

Key Highlights

  • 1Increased uncommitted, unsecured line of credit from $45 million to $75 million.
  • 2Amendment to Line of Credit Note with Citizens Bank of Pennsylvania.
  • 3Provides enhanced short-term borrowing capacity for the Company.
  • 4Each borrowing requires the Bank's prior approval at its sole discretion.
  • 5Repayment terms updated: loans must be repaid no later than 30 days after advancement.
  • 6Interest on loans will be at the Bank's prevailing rates and paid monthly.
  • 7Standard events of default and remedies are detailed, including bank's right to demand immediate repayment.

Frequently Asked Questions

The primary purpose of this filing is to report a material amendment to AmerisourceBergen Corporation's line of credit, specifically increasing the maximum borrowing amount available under an uncommitted, unsecured facility.

The uncommitted, unsecured line of credit was increased from an aggregate principal amount not to exceed $45,000,000 to $75,000,000.

This is an uncommitted line of credit, meaning that each borrowing request is subject to the prior approval of Citizens Bank of Pennsylvania, in its sole discretion. The increase in capacity does not guarantee access to funds for any specific borrowing.

Under the First Amendment, the unpaid principal balance of each revolving credit loan must be repaid on the applicable repayment date, which shall not be later than 30 days after such loan was advanced.