| Item 1.01. |
Entry into a Material Definitive Agreement. |
Revolving Credit Agreement Amendment
On March 1, 2022, WESCO Distribution, Inc., a Delaware corporation (“Wesco Distribution”) amended its revolving credit facility (the “Revolving Credit Facility”) pursuant to the terms and conditions of a Second Amendment to Fourth Amended and Restated Credit Agreement, dated as of March 1, 2022 (the “Revolver Amendment”), by and among WESCO International, Inc., a Delaware corporation, Wesco Distribution, as the borrower representative, the other U.S. borrowers party thereto, WESCO Distribution Canada LP, the other Canadian borrowers party thereto, the lenders party thereto and Barclays Bank PLC, as administrative agent, which amends the Fourth Amended and Restated Credit Agreement, dated as of June 22, 2020. The Revolver Amendment, among other things, (i) increases the revolving commitments under the Revolving Credit Facility from $1,200 million to $1,350 million, (ii) increases the sub-facility for loans denominated in Canadian dollars from $500 million to $550 million, (iii) increases the capacity to request increases in the revolving commitments under the Revolving Credit Facility from $400 million to $650 million, (iv) modifies certain negative covenants to provide for additional flexibility and (v) extends the maturity date to March 1, 2027. Additionally, the Revolver Amendment replaces the London Inter-Bank Offered Rate-based (“LIBOR”) interest rate option with Secured Overnight Financing Rate-based (“SOFR”) interest rate options, including term SOFR and daily simple SOFR.
Receivables Purchase Agreement Amendment
On March 1, 2022, Wesco Distribution amended its accounts receivable securitization facility (the “Receivables Facility”) pursuant to the terms and conditions of a Fourth Amendment to the Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 1, 2022 (the “Receivables Amendment”), by and among WESCO Receivables Corp., Wesco Distribution, the various purchaser groups from time to time party thereto and PNC Bank, National Association, as administrator, which amends the Fifth Amended and Restated Receivables Purchase Agreement, dated as of June 22, 2020. The Receivables Amendment, among other things, (i) increases the purchase limit under the Receivables Facility from $1,300 million to $1,400 million, (ii) increases the capacity to request increases in the purchase limit under the Receivables Facility from $300 million to $350 million, and (iii) extends the maturity date to March 1, 2025. Additionally, the Receivables Amendment replaces the LIBOR-based interest rate option with SOFR-based interest rate options, including term SOFR and daily simple SOFR, and decreases the interest rate spread from 1.15% to 1.10%.
General
Copies of the Revolver Amendment and the Receivables Amendment are filed as Exhibit 10.1 and Exhibit 10.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference. The description above is a summary of the Revolver Amendment and the Receivables Amendment, does not purport to be complete, and is qualified in its entirety by the complete text of the Revolver Amendment and the Receivables Amendment, as applicable.