8-KMaterial AgreementsExhibits & Filings

Cencora, Inc. 8-K Report, Material Agreement (Dec 8, 2014)

Filed December 8, 2014For Securities:COR

Summary

Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on December 8, 2014, to report a material definitive agreement. Specifically, the company entered into the Eighth Amendment to its Amended and Restated Receivables Purchase Agreement on December 5, 2014. This amendment is significant as it impacts the company's liquidity and funding mechanisms, particularly through its securitization facility. The primary purpose of this amendment is to enhance the flexibility and extend the operational parameters of the receivables purchase facility. Key adjustments include extending the time period for Days Sales Outstanding (DSO) before an Amortization Event is triggered, increasing the allowable percentage of Eligible Receivables under the Obligor Concentration Limit, and extending the termination date of the facility. These changes are designed to support ongoing business needs and potentially seasonal funding requirements.

Key Highlights

  • 1AmerisourceBergen Corporation (now Cencora, Inc.) executed an Eighth Amendment to its Amended and Restated Receivables Purchase Agreement on December 5, 2014.
  • 2The amendment enhances the company's liquidity and funding capabilities through a securitization facility.
  • 3Key changes include extending the DSO threshold for an Amortization Event, increasing the Obligor Concentration Limit, and extending the facility's termination date.
  • 4The securitization facility is based on accounts receivables from pharmaceutical sales and related services.
  • 5The facility has a base limit of $950 million with an option to increase by an additional $250 million for seasonal needs.
  • 6The company's ongoing business needs are supported by this agreement.
  • 7The filing was signed by Tim G. Guttman, Executive Vice President and Chief Financial Officer.

Frequently Asked Questions

The Eighth Amendment was entered into to enhance AmerisourceBergen's (now Cencora) liquidity and funding by modifying its securitization facility. Key changes include extending certain operational timeframes and limits, as well as extending the facility's termination date, all to better support ongoing business needs.

The securitization facility has a base limit of $950 million. Additionally, there is an option to increase the commitments by $250 million for seasonal needs, particularly during the December and March quarters, subject to lender approval.

The amendment provides greater financial flexibility by allowing for a longer period before triggering an Amortization Event based on Days Sales Outstanding (DSO). It also increases the flexibility regarding the concentration of receivables from a single obligor and extends the availability of this funding source, ensuring continued access to capital for operational and seasonal requirements.

The Eighth Amendment increases the allowable percentages of Eligible Receivables related to the Obligor Concentration Limit at any given time, providing the company with more flexibility in managing its receivables portfolio within the securitization facility.