SEC Filing Summary: SYNNEX CORPORATION (Form 8-K)
Business Context and Reporting Period
This Current Report (Form 8-K) was filed on May 17, 2006, by SYNNEX Corporation (now TD SYNNEX Corp). The filing details the entry into material definitive agreements and the creation of a direct financial obligation by the company's subsidiary, SYNNEX de Mexico, S.A. de C.V. ("SYNNEX Mexico").
Key Financial Metrics and Obligations
The filing does not provide revenue, profit, cash flow, or margin data. It focuses exclusively on new debt financing terms:
- Term Loan Commitment: Initial aggregate commitment of MXP $221,400,000 (Mexican Pesos), with a potential increase up to MXP $830,250,000.
- Interest Rate: Equilibrium Interbank Interest Rate plus 2.00% per annum.
- Maturity Date: November 24, 2009.
- Loan Purpose: Financing the purchase of computer and software-related equipment by SYNNEX Mexico.
- Guaranty: SYNNEX Corporation issued a guarantee for SYNNEX Mexico's obligations under this term loan.
Material Changes and Agreements
On May 17, 2006, the Company executed the following amendments to facilitate the new Mexican financing:
- Credit Agreement Amendment No. 9: Amended the Amended and Restated Credit Agreement (dated July 9, 2002) with General Electric Capital Corporation and Bank of America, N.A. This amendment allows for standby letters of credit and consents to the SYNNEX Mexico term loan and the parent company's guaranty.
- Receivables Agreement Amendment No. 5: Amended the Amended and Restated Receivables Transfer and Purchase Agreements (dated August 30, 2002) with various lenders including SIT Funding Corporation and Sumitomo Mitsui Banking Corporation. This amendment provides consent for the SYNNEX Mexico term loan and guaranty.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of general risks. The primary contingency noted is that the new Term Loan contains customary financial covenants that SYNNEX Mexico must adhere to. The loan availability is capped by the lesser of the commitment amount or the aggregate purchase prices of the equipment being financed.
Key Facts for Investor Verification
- Verify the current exchange rate impact of the MXP $221.4 million to $830.25 million exposure on the consolidated balance sheet.
- Confirm the specific financial covenants attached to the new Term Loan to assess compliance risks.
- Review the utilization rate of the initial MXP $221.4 million commitment versus the potential maximum of MXP $830.25 million.
- Assess the impact of the parent company's guaranty on overall corporate leverage and credit capacity.