Business Context and Reporting Period
Company: Avnet, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 1, 2010
Event Date: August 26, 2010
Context: The Company entered into a material definitive agreement to amend its existing receivables securitization facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses on debt and liquidity structures related to accounts receivable.
- Facility Capacity: Up to $600,000,000 in eligible receivables.
- Outstanding Balance: $300,000,000.
- Facility Expiration: August 25, 2011.
- Accounting Treatment: Borrowings are recorded as debt on the consolidated balance sheet (does not qualify for sale treatment).
Material Changes
On August 26, 2010, Avnet, Inc. and its wholly-owned subsidiary, Avnet Receivable Corporation, entered into the Second Amended and Restated Receivables Purchase Agreement with financial institutions and JPMorgan Chase Bank, N.A., as Agent. This agreement supersedes the Original Purchase Agreement dated June 28, 2001, and all prior amendments. Concurrently, the Company amended its Receivables Sale Agreement.
Outlook, Risks, and Management Commentary
The filing provides no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the terms of the new agreement. The primary operational detail is that the Company retains a subordinated interest in a portion of the receivables sold under the revolving facility.
Investor Verification Checklist
- Verify the specific terms and interest rates within the Second Amended and Restated Receivables Purchase Agreement (Exhibit 10.1).
- Confirm the impact of the $300,000,000 outstanding balance on the Company's total debt load and leverage ratios.
- Review the subordinated interest retained by the Company to understand potential exposure to receivable defaults.
- Monitor the facility's expiration date of August 25, 2011, for potential refinancing needs.