SANMINA CORPORATION (NASDAQ:SANM) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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SANMINA CORPORATION (NASDAQ:SANM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On March26, 2018, Sanmina Corporation (the “Company”) entered into a Receivables Purchase Agreement (the “Receivables Purchase Agreement”), among the Company, the sellers and buyers from time to time party thereto and The Bank of Tokyo-Mitsubishi UFJ,Ltd., as administrative agent (“BTMU”).

Under the terms of the Receivables Purchase Agreement, the Company and other subsidiaries of the Company who may join the Receivables Purchase Agreement from time to time as sellers (together, the “Sellers”) will sell accounts receivable on a revolving basis to BTMU and other buyers from time to time party to the Receivables Purchase Agreement (together, the “Buyers”). The Company will service and administer the subject receivables for the Buyers and will guarantee the obligations of subsidiary Sellers under the Receivables Purchase Agreement.

The Sellers will be paid a discounted purchase price for each receivable sold under the Receivables Purchase Agreement. The discount rate used to determine the purchase price for the subject receivables is based upon LIBOR plus a margin applicable to the specified obligor. The maximum outstanding balance of receivables under the Receivables Purchase Agreement can be $140 million at any one point. Sellers are not required to offer to sell any receivables and the Buyers are not committed to purchase any receivable offered by Sellers.

The term of the Receivables Purchase Agreement will end on March25, 2019, subject to automatic 364-day extensions unless Sellers or BTMU elect not to extend the term. Additionally, the Sellers, the Buyers or BTMU may terminate the Receivables Purchase Agreement at any time upon 30 days’ prior written notice.

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 hereof is incorporated by reference into this Item 2.03.


About SANMINA CORPORATION (NASDAQ:SANM)

Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.