CDW Corp Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by CDW Corporation on June 6, 2014. The filing details the entry into a material definitive agreement regarding the amendment, extension, and expansion of the company's senior secured asset-based revolving credit facility.
Key Financial Metrics and Facility Terms
The filing outlines specific changes to the company's debt structure and liquidity terms rather than reporting operational financial results such as revenue or profit.
- Facility Size: Increased from $900.0 million to $1,250.0 million.
- Incremental Increases: Maximum aggregate amount increased from $200.0 million to $300.0 million.
- Unused Fee: Reduced from 37.5 or 50 basis points to 25 basis points.
- Maturity Date: Extended from June 24, 2016, to June 6, 2019.
- Pricing Grid: Reduced by 50 basis points, with an additional potential reduction of 25 basis points contingent on maintaining specific credit ratings (BB or better for corporate; Ba3 or better for corporate family).
- Floorplan Sub-facility: The previous limit on this sub-facility has been removed.
- Minimum Liquidity Condition: Amended to require excess cash availability of at least $125.0 million (up from $90.0 million) or the greater of 10% of the borrowing base and $100.0 million (up from $60.0 million).
Material Changes Versus Prior Period
The primary material change is the replacement of the Original Revolving Loan Agreement (dated June 24, 2011) with the Amended and Restated Revolving Loan Agreement. This change significantly increases borrowing capacity, extends the debt maturity horizon by approximately three years, and lowers the cost of borrowing through reduced fees and pricing grids.
Guidance, Outlook, and Risks
The filing does not provide operational guidance, management commentary on future earnings, or specific risk factors beyond the terms of the credit agreement. The agreement includes a liquidity covenant where lenders are not required to lend additional amounts if excess cash availability falls below the amended thresholds unless the consolidated fixed charge coverage ratio is at least 1.00 to 1.00.
Key Facts for Investor Verification
- Verify the total available borrowing capacity is now $1,250.0 million with an option for up to $300.0 million in incremental increases.
- Confirm the new maturity date of June 6, 2019, for the revolving credit facility.
- Review the updated minimum liquidity thresholds ($125.0 million or 10% of borrowing base/$100.0 million) that trigger lending restrictions.
- Check the company's current credit ratings to determine if the additional 25 basis point pricing reduction is active.
- Note that the filing text does not provide current revenue, profit, or cash flow figures; these must be sourced from recent 10-Q or 10-K filings.