UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 27, 2011
Tech Data Corporation
(Exact name of registrant as specified in its charter)
Florida | 0-14625 | 59-1578329 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
5350 Tech Data Drive Clearwater, Florida |
33760 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: 727-539-7429
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01. | Entry into a Material Definitive Agreement |
On September 27, 2011, Tech Data Corporation (the Company) entered into a Credit Agreement, which replaces the Companys Third Amended and Restated Credit Agreement dated as of March 20, 2007. The Credit Agreement, among other things, i) provides a $500.0 million revolving credit facility with a maturity date of September 27, 2016, ii) provides for an interest rate on borrowings, facility fees and letter of credit fees based on the Companys non-credit-enhanced senior unsecured debt rating as determined by Standard & Poors Rating Service and Moodys Investor Service, and iii) may be increased up to $750 million, subject to certain conditions. The Credit Agreement includes various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers, including a maximum debt to capitalization ratio and minimum interest coverage. The interest rate on the Credit Agreement is based on LIBOR plus a predetermined margin that is based on the Companys debt rating.
Bank of America, N.A. served as Administrative Agent with participation in the facility by: i) Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Citigroup Global Markets, Inc. and J.P. Morgan Securities LLC as Joint Lead Arrangers, ii) Citibank N.A. and JPMorgan Chase Bank, N.A. as Co-Syndication Agents and iii) Sun Trust Bank, The Bank of Nova Scotia, The Royal Bank of Scotland PLC, U.S. Bank National Association and Unicredit Bank AG as Co-Documentation Agents, and various other lenders.
The foregoing description of the Agreement is qualified in its entirety by reference to the complete terms and conditions of the Agreement, which will be filed as an exhibit to the Companys Quarterly Report on Form 10-Q for the quarter ending October 31, 2011.
Item 2.03. | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant |
The information provided in Item 1.01 of this Current Report on Form 8-K is hereby incorporated into this Item 2.03 by reference.
Item 9.01. | Financial Statements and Exhibits |
(c) October 3, 2011 Press Release by Tech Data Corporation
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Tech Data Corporation | ||||
Registrant | ||||
October 3, 2011 |
/s/ Jeffery P. Howells | |||
Date | Jeffery P. Howells Executive Vice President & Chief Financial Officer Tech Data Corporation |
Exhibit 9.01c
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NEWS | |||
| ||||
5350 Tech Data Drive | ||||
Clearwater, FL 33760 | ||||
(727) 539-7429 | ||||
FOR IMMEDIATE RELEASE | SYMBOL: TECD | |||
Monday, October 3, 2011 | TRADED: NASDAQ/GS |
Tech Data Takes Steps to Further Strengthen Its Capital Structure
Completes New $500 Million Five-Year Senior Unsecured Credit Facility;
Renews and Upsizes Receivables Securitization Program
CLEARWATER, FL. Tech Data Corporation (NasdaqGS: TECD), one of the worlds largest wholesale distributors of technology products, announced today that the company has entered into a new $500 million five-year revolving credit agreement, replacing a $250 million revolving credit facility that was set to expire in March 2012. The new revolving credit facility expires in September 2016.
In addition, the company renewed its Receivables Securitization Program, increasing the borrowing capacity under the facility by $150 million to a maximum of $300 million, and extending the term by one additional year to August 2012.
The upsized and extended credit facilities strengthen our liquidity profile and provide us with additional financial flexibility at attractive rates, said Jeffery P. Howells, executive vice president and chief financial officer, Tech Data Corporation. We appreciate the strong support of our bank groups and their demonstrated confidence in Tech Data. Our excellent operating performance, good cash flow and strong capital structure position us well to take advantage of market opportunities as they arise.
Additional details regarding the credit agreement are available in the Current Report on Form 8-K filed with the Securities and Exchange Commission on October 3, 2011.
About Tech Data
Tech Data Corporation (NASDAQ GS: TECD) is one of the worlds largest wholesale distributors of technology products. Its advanced logistics capabilities and value added services enable 125,000 resellers in more than 100 countries to efficiently and cost effectively support the diverse technology needs of end users. Tech Data generated $24.4 billion in net sales for the fiscal year ended January 31, 2011 and is ranked 109th on the Fortune 500®. To learn more, visit www.techdata.com.
The matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in the companys periodic filings with the Securities and Exchange Commission, including the companys most recent Form 10-K and Form 10-Q, copies of which can be obtained at the companys Investor Relations website at www.techdata.com.
FOR MORE INFORMATION CONTACT:
Jeffery P. Howells, Executive Vice President and Chief Financial Officer
727-538-7825 (jeff.howells@techdata.com) or
Arleen Quiñones, Director, Investor Relations and Shareholder Services
727-532-8866 (arleen.quinones@techdata.com)