SEC Filing Summary: SYNNEX CORPORATION (8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by SYNNEX Corporation on November 6, 2014. The filing details a material amendment to the company's accounts receivable securitization program involving its subsidiary, SIT Funding Corporation, and a syndicate of lenders led by The Bank of Nova Scotia.
Key Financial Metrics and Debt Structure
The filing focuses on the restructuring of the company's U.S. Agreement (securitization program). Key financial terms updated include:
- Lending Commitment: Increased by $100 million to a total of $600 million.
- Maturity Date: Extended to November 4, 2016.
- Program Fee: Reduced to 0.375% per annum on the used portion of the commitment.
- Facility Fee: Reduced to 0.40% per annum on the aggregate commitment.
The filing does not provide specific values for revenue, net profit, operating cash flow, or overall liquidity positions outside of the specific terms of this credit facility.
Material Changes Versus Prior Period
Compared to the prior terms of the U.S. Agreement, the material changes are:
- Expansion of available credit capacity by $100 million.
- Extension of the facility's maturity timeline.
- Reduction in the cost of borrowing (both program and facility fees).
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or a discussion of general business risks. The primary contingency noted is the execution of the Fourth Omnibus Amendment, which is attached as Exhibit 10.1 (with portions omitted for confidential treatment).
Key Facts for Investor Verification
- Verify the total outstanding balance under the amended $600 million securitization facility in subsequent quarterly reports.
- Confirm the impact of the reduced fees (0.375% and 0.40%) on the company's interest expense in future earnings statements.
- Review the full text of Exhibit 10.1 to understand any covenants or conditions attached to the increased lending commitment.
- Monitor the company's liquidity position to ensure the extended maturity date aligns with long-term debt management strategies.