ITEM 1.01 Entry into a Material Definitive Agreement.
OnMarch 26, 2021 ,Applied Industrial Technologies, Inc. (the "Company") amended its accounts receivable securitization facility (the "Receivables Facility"), extending its maturity toMarch 26, 2024 . The Receivables Facility had been set to expire onAugust 31, 2021 . The amendment of the Receivables Facility included (a) an Amendment No. 1 to Receivables Financing Agreement and Reaffirmation of Performance Guaranty by and among the Company, as servicer,AIT Receivables LLC ("AIT Receivables"), a whollyowned special purpose subsidiary of the Company, as borrower,PNC Bank, National Association ("PNC"), as administrative agent,PNC Capital Markets LLC , as structuring agent and certain additional persons from time to time party thereto, as lenders, and (b) an Amendment No. 2 to Purchase and Sale Agreement by and among AIT Receivables, the Company and certain of its wholly-owned subsidiaries, as originators (together, the "Receivables Facility Amendments"). Pursuant to the Receivables Facility Amendments, two additional subsidiaries of the Company joined the existing originators in contributing current and future trade receivables to the pool of financed receivables. As a result, the maximum amount potentially available to borrow under the Receivables Facility, based on eligibility of the contributed receivables, increased fromUS$175 million toUS$250 million . The amended Receivables Facility terminates onMarch 26, 2024 , unless terminated earlier pursuant to its terms, and increases the Company's available funding capacity for future working capital and general corporate purposes. In connection with these transactions, AIT Receivables paid customary fees to the lenders. The foregoing description of the Receivables Facility Amendments is qualified in its entirety by reference to the full text of each of the Receivables Facility Amendments, copies of which are respectively attached hereto as Exhibit 10.1 and Exhibit 10.2 and are incorporated herein by reference.
ITEM 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.03.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 10.1 Amendment No. 1 to Receivables Financing
Agreement and Reaffirmation of
Performance Guaranty dated as ofMarch 26, 2021
among
borrower,PNC Bank, National Association , as
administrative agent, Applied
Industrial Technologies, Inc. , as initial servicer,
as structuring agent and the additional persons
from time to time party
thereto, as lenders. 10.2 Amendment No. 2 to Purchase and Sale Agreement
dated as of
among various entities listed on Schedule I thereto (includingApplied Industrial Technologies, Inc. ), as originators,Applied Industrial Technologies, Inc. , as servicer, and AIT
--------------------------------------------------------------------------------
© Edgar Online, source