8-KMaterial AgreementsFinancial EventsExhibits & Filings

Cencora, Inc. 8-K Report, Material Agreement (Apr 23, 2024)

Filed April 23, 2024For Securities:COR

Summary

Cencora, Inc. (COR) has filed an 8-K report detailing amendments to its securitization facility. The most significant change is the extension of the facility's termination date from October 21, 2025, to October 21, 2026. This extension provides Cencora with continued access to a crucial liquidity and funding source for its ongoing business operations. The facility, which has a base limit of $1.45 billion and an option to increase by $250 million for seasonal needs, relies on accounts receivables from pharmaceutical sales and related services provided by its subsidiaries ABDC and ASD Specialty Healthcare, LLC. Additionally, the amendments introduce U.S. Bank National Association and Truist Bank as new committed purchasers while removing Mizuho Bank, Ltd. The report also notes technical changes to reflect the company's new name, Cencora, Inc. These updates to the securitization facility are important for investors as they ensure continued financial flexibility and operational support for Cencora's business.

Key Highlights

  • 1Cencora, Inc. extended its securitization facility's termination date by one year, from October 21, 2025, to October 21, 2026.
  • 2The facility provides significant liquidity and funding for ongoing business needs, with a base limit of $1.45 billion and a potential increase of $250 million for seasonal demands.
  • 3New financial institutions, U.S. Bank National Association and Truist Bank, have been added as committed purchasers to the facility.
  • 4Mizuho Bank, Ltd. has been removed as a committed purchaser from the facility.
  • 5Amendments were made to reflect the company's updated name to Cencora, Inc.
  • 6The facility is backed by accounts receivables generated from the sale of pharmaceuticals and related services by subsidiaries ABDC and ASD Specialty Healthcare, LLC.

Frequently Asked Questions

The primary purpose of the amendment is to extend the termination date of the securitization facility by one year, ensuring continued access to liquidity and funding for Cencora's ongoing business operations and those of its subsidiaries.

The securitization facility has a base limit of $1.45 billion and includes an option to increase commitments by an additional $250 million for seasonal needs during the December and March quarters, subject to bank approval.

U.S. Bank National Association and Truist Bank have been added as new committed purchasers, while Mizuho Bank, Ltd. has been removed as a committed purchaser.

The facility is supported by accounts receivables generated by Cencora's subsidiaries, AmerisourceBergen Drug Corporation (ABDC) and ASD Specialty Healthcare, LLC (ASD), from the sale of pharmaceuticals and related services. These receivables are sold to Amerisource Receivables Financial Corporation (ARFC), which then sells interests in them to the purchasers under the facility, providing Cencora with necessary funding.