CDW Corp Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by CDW Corporation on August 1, 2013, reporting events occurring on July 31, 2013. The filing details a material definitive agreement regarding the company's term loan facilities.
Key Financial Metrics
- Term Loan Increase: CDW LLC partially exercised an "Accordion" provision to increase aggregate commitments by $190.0 million.
- Total Outstanding Borrowings: Following the increase, the outstanding principal amount under the Term Loan Agreement is $1,536.6 million.
- Debt Covenants: The Accordion allows for additional borrowing up to $500.0 million, provided the senior secured net leverage ratio does not exceed 3.25 to 1.00.
- Use of Proceeds: Funds from the new loan and the recent initial public offering (IPO) were used to redeem a portion of existing senior subordinated exchange notes due 2017 and to pay related fees and expenses.
Note: This filing does not provide specific values for revenue, profit, cash flow, or operating margins.
Material Changes
The primary material change is the amendment to the Term Loan Agreement effective July 31, 2013, which established a new incremental term loan facility. This action increased the company's total debt obligations under the specific term loan agreement by $190.0 million while simultaneously reducing outstanding senior subordinated notes.
Outlook, Risks, and Management Commentary
Management utilized the proceeds to optimize the capital structure by refinancing higher-cost or specific legacy debt (the 2017 notes) with the new term loan facility. The filing notes that all other material terms of the Term Loan Agreement remain unchanged. No specific forward-looking guidance or new risk factors were disclosed in this specific report beyond the standard debt covenant limitations.
Key Facts for Investor Verification
- Verify the total outstanding debt load of $1,536.6 million under the Term Loan Agreement.
- Confirm the remaining capacity under the Accordion provision (up to $500.0 million total, subject to the 3.25x leverage ratio).
- Review the specific terms of the redeemed senior subordinated exchange notes due 2017 to understand the impact on future interest obligations.
- Check the company's most recent 10-Q or 10-K for the current senior secured net leverage ratio to assess remaining borrowing capacity.