Core & Main, Inc. — Form 8-K Summary
Business Context and Reporting Period
Core & Main, Inc. reported on August 1, 2022, regarding a material amendment executed on July 29, 2022, to the asset-based revolving credit facility of its wholly owned subsidiary, Core & Main LP.
Financing and Key Metrics
- The aggregate ABL Facility commitments increased by $400.0 million, to $1.25 billion.
- The facility was amended to use a forward-looking rate based on the secured overnight financing rate (SOFR) instead of the London Interbank Offered Rate (LIBOR).
- All borrowings mature on July 27, 2026.
- As of July 29, 2022, the company had $142.0 million of revolving loans outstanding and $9.0 million of letters of credit issued.
- Core & Main may request additional revolving commitments or term loans, subject to specified conditions and lender commitments. Total ABL commitments and term loans may not exceed the greater of $2.0 billion or the calculated borrowing base.
- No subsidiary borrowers were party to the ABL Facility as of July 29, 2022.
Material Changes Versus the Prior Agreement
- Amendment No. 4 increased total facility commitments by $400.0 million.
- The permitted aggregate commitment and term-loan capacity increased by $650.0 million, from the prior level to $2.0 billion, subject to the borrowing base.
- The interest-rate benchmark was changed from LIBOR to a SOFR-based forward-looking rate.
Guidance, Outlook, Risks, and Unusual Items
The filing does not provide revenue guidance, earnings outlook, operating commentary, or financial statements. The principal disclosed development is expanded borrowing capacity and related debt-market terms. Availability under the facility remains subject to borrowing-base calculations, conditions, and lender commitments, and outstanding borrowings and letters of credit reduce available capacity.
Investor Verification Items
- Review Amendment No. 4 for interest-rate margins, fees, covenants, borrowing-base mechanics, and default provisions.
- Verify subsequent borrowings, repayments, letters of credit, and unused availability under the ABL Facility.
- Assess the company’s total debt, liquidity, and compliance with facility covenants in subsequent periodic filings.
- Confirm the financial impact of the SOFR transition and any related changes in borrowing costs.