PC Connection, Inc. (NASDAQ:CNXN) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
-
0

PC Connection, Inc. (NASDAQ:CNXN) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement.

Second Amendment to Third Amended and Restated Credit and
Security Agreement

PC Connection, Inc., a Delaware corporation (the Company),entered
into a Third Amended and Restated Credit Agreement on February
24, 2012, by and among the Company, the guarantors party thereto,
the lenders from time to time party thereto, and Citizens Bank,
N.A., as Agent for the lenders, to which the Company renewed for
an additional five years its existing $50.0 million secured
revolving credit facility, which may be increased to $80.0
million at the option of the Company in certain circumstances.
The credit facility includes various customary financial ratios
and operating covenants, including minimum net worth and maximum
funded debt ratio requirements, and default acceleration
provisions.On February10, 2017, the Company, as borrower, and
GovConnection, Inc., PC Connection Sales Corporation, MoreDirect,
Inc. and GlobalServe, Inc., as guarantors, entered into the
Second Amendment to Third Amended and Restated Credit and
Security Agreement(the Amendment) with Citizens Bank, N.A., as
Agent and lender.

Terms of the revolving credit facility modified by the Amendment
include the following:

extension of the maturity date of the revolving credit
facility to February 10, 2022;

modification of the definitions of Eurodollar Rate and
LIBOR Advantage Rate to refer to the ICE Benchmark
Administration;

an increase in certain thresholds for permitted
acquisitions and for indebtedness permitted to be
incurred in connection withpermitted acquisitions,
permitted vendor debt and purchase money and capital
lease indebtedness;

modification of the Minimum Consolidated Net
Worthfinancial covenant to increase the minimum amount
required to be maintained to $346,694,000 as of September
30, 2016 plus 50% of consolidated net income for each
quarter, beginning with the quarter ending December 31,
2016.

In connection with the Amendment, the Company paid a one-time
facility feeto the lender. The foregoing description of the
Amendment does not purport to be complete and is qualified in its
entirety by reference to the full text of the Amendment, which is
filed as Exhibit 10.1 hereto and incorporated herein by
reference.

Item9.01 Financial Statements and Exhibits.

(d)Exhibits

10.1Second Amendment to Third Amended and Restated Credit and
Security Agreement, dated as of February10, 2017, by and among PC
Connection, Inc., as Borrower,GovConnection, Inc., PC Connection
Sales Corporation, MoreDirect, Inc. and GlobalServe, Inc., as
Guarantors, and Citizens Bank, N.A., as Lender and Agent.


About PC Connection, Inc. (NASDAQ:CNXN)

PC Connection, Inc. is a provider of information technology (IT) solutions. The Company operates through three business segments: small- to medium-sized businesses (SMB), Large Account and Public Sector. In the SMB Segment, it serves small-to-medium-sized business customers through its PC Connection Sales subsidiary. In Large Account Segment, it serves large enterprise customers through its MoreDirect subsidiary. In the Public Sector segment, it serves federal government, higher educational institutions, school grades K-12, and state and local governments, through its GovConnection subsidiary. Its products include computer systems, software and peripheral equipment, networking communications, and other products and accessories that the Company purchases from manufacturers, distributors and other suppliers. It also offers services involving design, configuration and implementation of IT solutions. It offers products from Apple, Cisco Systems, Dell, EMC, IBM and Lenovo, among others.

PC Connection, Inc. (NASDAQ:CNXN) Recent Trading Information

PC Connection, Inc. (NASDAQ:CNXN) closed its last trading session up +0.06 at 27.76 with 50,015 shares trading hands.