PCM, Inc. (NASDAQ:PCMI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
On October 24, 2017, PCM, Inc. (“PCM”), all of its wholly-owned domestic subsidiaries (collectively with PCM, the “US Borrowers”), all of its Canadian subsidiaries (collectively, the “Canadian Borrowers”) and its PCM Technology Solutions UK, Ltd subsidiary (the “UK Borrower, and together with the US Borrowers and the Canadian Borrowers, the “Borrowers”), entered into a Fifth Amended and Restated Loan and Security Agreement (the “Fifth Amended Loan Agreement”) with certain lenders named therein (the “Lenders”) and Wells Fargo Capital Finance, LLC as administrative and collateral agent for the Lenders (the “Agent”). The Fifth Amended Loan Agreement amends and restates the Fourth Amended and Restated Loan and Security Agreement, dated as of January 19, 2016 (the “Prior Loan Agreement”).
The Fifth Amended Loan Agreement provides for, among other things with no other material changes from the Prior Loan Agreement: (i) the addition of a sub-line of up to £25,000,000 available for our UK Borrower, (ii) interest on outstanding UK balances based on LIBOR plus a margin, depending on average excess availability under the Revolving Line, ranging from 1.50% to 1.75%; and (iii) an increase in the default threshold of any judgment for payment of money rendered against any Borrowers to $20,000,000 in any one case and $25,000,000 in the aggregate, as more fully described in the Fifth Amended Loan Agreement.
The Borrowers paid certain fees and costs, including but not limited to, a $69,000 closing fee distributed among the US lenders and a £50,000 closing fee distributed among the UK lenders.
| 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 under Item 1.01 is incorporated by reference into this Item 2.03.
About PCM, Inc. (NASDAQ:PCMI)
PCM, Inc. is engaged in providing technology products, services and solutions through direct marketing channels, and owned and operated data centers. The Company offers technology products, solutions and other consumer products. Its segments include Commercial, Public Sector, MacMall, Canada, and Corporate & Other. The Commercial segment sells complex products, services and solutions to commercial businesses in the United States. The Public Sector segment consists of sales made primarily to federal, state and local governments, as well as educational institutions. The MacMall segment consists of sales made through telephone and the Internet to consumers, small businesses and creative professionals. The Canada segment consists of sales made to customers in the Canadian market. The Company sells its products primarily to customers in the United States and Canada, and maintains offices throughout the United States and Canada, as well as in Montreal, Canada and Manila, Philippines.