CDW Corp Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by CDW Corporation on March 11, 2011. The report discloses the entry into a Material Definitive Agreement regarding the company's term loan facility.
Key Financial Metrics
The filing does not provide specific values for revenue, profit, cash flow, margins, or overall debt levels. The only financial metric disclosed relates to the amendment of the term loan agreement:
- Restricted Payments Basket: Reset to its original amount of $25,000,000.
- Interest Rate Floors: A LIBOR floor of 1.25% and a base rate floor of 2.25% were established.
Material Changes
On March 11, 2011, CDW LLC entered into Amendment No. 3 to its term loan agreement with Morgan Stanley Senior Funding, Inc., and other lenders. Key changes include:
- Reduction of the applicable percentage regarding the extended portion of the term loan facility.
- Implementation of new interest rate floors (LIBOR 1.25%, Base Rate 2.25%).
- Resetting of the general restricted payments basket to $25,000,000.
- Provisions are expected to become effective on March 14, 2011.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of risks and contingencies beyond the specific terms of the loan amendment. The text notes that the description of the amendment is qualified by reference to the full agreement filed as Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 10.1 (Amendment No. 3) for the complete text of the term loan amendment.
- Verify the specific impact of the reduced applicable percentage on the extended portion of the term loan.
- Confirm the effective date of March 14, 2011, for the new interest rate floors and payment basket reset.