CDW Corp Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by CDW Corporation on September 18, 2013. The filing reports a specific triggering event regarding the company's debt obligations rather than providing periodic financial results.
Key Financial Metrics and Debt Activity
The filing details a partial redemption of outstanding debt instruments:
- Instrument: 12.535% Senior Subordinated Exchange Notes due 2017.
- Redemption Amount: $155.0 million aggregate principal amount.
- Total Outstanding Notes: $247.5 million aggregate principal amount prior to redemption.
- Redemption Price: 104.178% of the principal amount ($1,041.78 per $1,000 principal).
- Redemption Date: October 18, 2013.
- Issuers: CDW LLC and CDW Finance Corporation.
The filing text does not provide clear values for revenue, profit, cash flow, margins, or overall liquidity metrics, as this is an event-driven report.
Material Changes
The primary material change is the reduction of the company's long-term debt load by approximately 62.6% of the specific note issuance ($155.0 million of the $247.5 million outstanding). This action will result in a cash outflow equal to the redemption price plus accrued interest on the redemption date.
Outlook, Risks, and Management Commentary
Management commentary is limited to the announcement of the redemption. The filing incorporates a press release (Exhibit 99.1) for further details. No specific forward-looking guidance, new risk factors, or contingencies are disclosed in the text of this filing beyond the execution of the debt redemption.
Key Facts for Investor Verification
- Verify the exact cash outflow required on October 18, 2013, including accrued interest.
- Confirm the remaining principal balance of the 12.535% Notes after the $155.0 million redemption.
- Review the attached press release (Exhibit 99.1) for the strategic rationale behind the early redemption.
- Assess the impact of this debt reduction on the company's overall leverage ratios and interest expense.