POOL CORPORATION Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by POOL CORPORATION on October 28, 2014, regarding events occurring on October 24, 2014. The filing details an amendment to the Company's Receivables Purchase Agreement involving its securitization subsidiary, Superior Commerce LLC.
Key Financial Metrics and Facility Details
The filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on the amendment of a financing facility. Key terms of the amended agreement include:
- Facility Termination Date: Extended to October 24, 2016.
- Peak Funding Capacity: Increased to $140,000,000 between May 1 and June 30.
- Seasonal Facility Limit: An additional $40,000,000 remains available between April 1 and July 31.
- Adjusted Funding Limits:
- $70,000,000 between October 1 and February 28.
- $120,000,000 between March 1 and April 30, and between July 1 and September 30.
Material Changes
The primary material change is the extension of the facility's maturity date by two years and the restructuring of funding capacity limits to better align with seasonal business needs, specifically increasing the peak summer capacity.
Outlook, Risks, and Management Commentary
The filing states that the agreement contains customary terms, representations, covenants, and conditions precedent. It notes that the Company and its affiliates may engage parties to the agreement for commercial banking and investment banking services for which customary fees and commissions are paid. No specific forward-looking guidance or new risk factors were disclosed in this report.
Investor Verification Checklist
- Verify the full text of Amendment No. 3 to the Receivables Purchase Agreement filed as Exhibit 10.1.
- Review the specific covenants and conditions precedent attached to the increased funding limits.
- Confirm the impact of the extended termination date on the Company's overall debt maturity profile.
- Check subsequent filings for actual utilization rates of the new seasonal and peak funding limits.