Business Context and Reporting Period
Company: SYNNEX Corporation (now TD SYNNEX Corp)
Filing Type: Form 8-K (Current Report)
Date of Report: May 7, 2018
Event: Amendment of a Material Definitive Agreement regarding the company's accounts receivable securitization program.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It specifically addresses debt capacity and liquidity facilities:
- Facility Type: Trade Receivables Securitization Program.
- Previous Lending Commitment: $600 million (implied by the $250 million increase to $850 million).
- New Lending Commitment: $850 million.
- Accordion Feature Increase: Increased to $150 million.
- Maturity Date: Extended to May 7, 2020.
Material Changes Versus Prior Period
On May 7, 2018, SYNNEX entered into an Eighth Omnibus Amendment to its Receivables Funding and Administration Agreement with MUFG Bank, LTD. (as agent) and other lenders. The material changes include:
- An increase in the total lending commitment by $250 million.
- An expansion of the accordion feature, allowing for an additional $150 million in commitments upon request.
- An extension of the facility's maturity date by two years to May 7, 2020.
Guidance, Outlook, and Risks
Management Commentary: The filing focuses on the structural enhancement of the company's liquidity facilities rather than operational guidance or earnings outlook.
Risks and Contingencies: The filing notes that portions of the amendment exhibit have been omitted and filed separately with the SEC pursuant to a request for confidential treatment. No specific new risks or contingencies are detailed in the summary text beyond the standard terms of the amended agreement.
Key Facts for Investor Verification
- Verify the full text of the Eighth Omnibus Amendment (Exhibit 10.1) to understand specific covenants and conditions attached to the increased $850 million commitment.
- Confirm the utilization rate of the securitization facility to assess immediate liquidity needs versus available capacity.
- Review the terms of the accordion feature to understand the conditions required to draw the additional $150 million.
- Check subsequent filings for any changes to the maturity date or commitment levels prior to the May 2020 expiration.