Business Context and Reporting Period
Company: ARROW ELECTRONICS, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: December 23, 2016
Event: Execution of an Amended and Restated Credit Agreement.
Key Financial Metrics
This filing reports on a specific financing event rather than periodic operating results. Key financial terms include:
- Total Credit Facility: Up to $1,800,000,000.
- Facility Type: Revolving credit facilities and letters of credit.
- Currencies: U.S. Dollars, British Pounds Sterling, Euros, and other specified currencies.
- Interest/Fees: Determined based on the Company's senior unsecured debt ratings (Moody's or S&P).
- Maturity Date: December 23, 2021.
Note: The filing text does not provide values for revenue, profit, cash flow, margins, or current debt balances.
Material Changes
The Company amended its existing credit facility dated December 13, 2013. The new agreement replaces the prior facility with an aggregate capacity of $1.8 billion. The agreement introduces specific covenants regarding financial ratios, restrictions on liens, mergers, acquisitions, and subsidiary indebtedness.
Outlook, Risks, and Contingencies
Covenants and Restrictions: The agreement includes restrictions on the Company's ability to incur liens, merge, consolidate, or make certain acquisitions. It also limits subsidiaries' ability to pay dividends or incur indebtedness.
Events of Default: Default triggers include failure to pay principal or interest, breach of representations, covenant defaults, insolvency, imposition of certain judgments, ERISA events, change in control, impairment of loan documentation, and cross-defaults to other indebtedness.
Guarantees: The Company's obligations are guaranteed by certain domestic subsidiaries, and subsidiary borrower obligations are guaranteed by the Company.
Investor Verification Checklist
- Verify the Company's current senior unsecured debt ratings to determine applicable interest margins.
- Review the specific financial ratio covenants required under the new Credit Agreement.
- Confirm the utilization status of the $1.8 billion facility in subsequent filings.
- Monitor for any events of default or cross-defaults with other indebtedness.