Business Context and Reporting Period
Company: Pool Corporation
Filing Type: Form 8-K (Current Report)
Report Date: November 4, 2019
Event Date: November 1, 2019
Context: The Company entered into an amendment to its existing Receivables Purchase Agreement to extend the facility termination date and adjust base facility limits.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general liquidity metrics. It specifically addresses the following debt facility details:
- Facility Type: Receivables Purchase Agreement (Securitization Facility).
- Maximum Facility Limit: $295,000,000 (maintained for the month of May).
- Amended Termination Date: Extended to November 1, 2021.
- Key Counterparties: MUFG Bank, Ltd., Bank of America, N.A., and Wells Fargo Bank, National Association.
Material Changes
On November 1, 2019, Pool Corporation amended its Receivables Purchase Agreement. The material changes include:
- Extension of the facility termination date from the original date to November 1, 2021.
- Inclusion of amendments to certain base facility limits throughout the year.
- Maintenance of the maximum facility limit of $295,000,000 in May.
Guidance, Outlook, and Risks
Management Commentary: The filing states that the agreement contains terms customary for transactions of this type. It notes that the Company and its affiliates may engage parties to the agreement for commercial banking, investment banking, and other services for which customary fees and commissions are paid.
Risks and Contingencies: The filing does not disclose new specific risks or contingencies beyond the standard terms of the amended agreement. The description of amendments is qualified by reference to the full text of Amendment No. 10 filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the specific adjustments to "base facility limits" throughout the year by reviewing Exhibit 10.1 (Amendment No. 10).
- Confirm the current utilization rate of the $295,000,000 facility to assess immediate liquidity impact.
- Review the customary fees and commissions associated with the banking services provided by the co-agents.
- Check for any covenants or conditions precedent in the amended agreement that could restrict future operations.