Business Context and Reporting Period
Company: Flowserve Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: October 6, 2005
Reporting Period: Event date October 6, 2005
Flowserve Corporation, a New York corporation, filed this report to disclose the entry into a material definitive agreement regarding its receivables financing arrangements.
Key Financial Metrics
This filing does not contain standard financial performance metrics such as revenue, profit, cash flow, margins, or total debt levels. The report focuses exclusively on amendments to a specific financing facility.
- Facility: Receivables Purchase Agreement dated October 7, 2004.
- Counterparties: Financial Institutions, Jupiter Securitization Corporation, and J.P. Morgan Chase Bank, N.A. (as Agent).
- Subsidiaries Involved: Flowserve Receivables Corporation and Flowserve US Inc.
Material Changes
On October 6, 2005, the Company entered into Waiver and Amendment No. 5 to its Receivables Purchase Agreement. The material changes include:
- Liquidity Termination Date Extension: The date was extended from October 6, 2005, to December 6, 2005.
- Loss Ratio Waiver: The Purchasers and Agent granted a waiver regarding the Company's compliance with the loss ratio requirement for the three-month period ended August 31, 2005.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future operations, or a general risk assessment. The primary contingency addressed is the temporary non-compliance with the loss ratio covenant for the quarter ended August 31, 2005, which has been waived by the lenders.
Investor Verification Checklist
- Verify the terms of the full Waiver and Amendment No. 5 (Exhibit 10.3) to understand any covenants or conditions attached to the loss ratio waiver.
- Review the status of the Liquidity Termination Date to confirm the facility remains active through December 6, 2005.
- Assess the impact of the loss ratio non-compliance on the Company's credit standing and future borrowing capacity.
- Check subsequent filings for any further amendments or terminations of the Receivables Purchase Agreement.