Anixter International Inc. Financial Statement Analysis
ANIXTER INTERNATIONAL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Aggregate annual maturities of debt before accretion of debt discount as reflected on the Consolidated Balance Sheet at
January 3, 2020 are as follows: 2020 - $8.8 million, 2021 - $398.3 million, 2022 - $0.0 million, 2023 - $403.9 million, 2024 -
$0.0 million and $247.3 million thereafter.
The Company's average borrowings outstanding was $1,406.6 million and $1,433.8 million for the fiscal years ending
January 3, 2020 and December 28, 2018, respectively. The Company's weighted-average cost of borrowings was 5.5% for the
year ended January 3, 2020 and 5.3% for the years ended December 28, 2018 and December 29, 2017, respectively. Interest
paid in 2019, 2018 and 2017 was $74.3 million, $73.9 million and $70.6 million, respectively.
At the end of fiscal 2019, Anixter had approximately $524.7 million and $134.3 million in available, committed, unused
borrowings under the $600.0 million U.S. accounts receivable asset based revolving credit facility and $150.0 million U.S.
inventory asset based revolving credit facility, respectively. All credit lines are with financial institutions with investment grade
credit ratings. Borrowings under these facilities are limited based on the borrowing base criteria as described below.
The Company is in compliance with all of its covenants and believes that there is adequate margin between the covenant
ratios and the actual ratios given the current trends of the business.
Revolving Lines of Credit and Canadian Term Loan
On October 5, 2015, Anixter, through its wholly-owned subsidiaries, Anixter Inc., Anixter Receivables Corporation
("ARC") and Anixter Canada Inc., entered into certain financing transactions in connection with the consummation of the
acquisition of Power Solutions, including a U.S. accounts receivable asset based revolving credit facility in an aggregate
committed amount of $600.0 million ("Receivables Facility"), a U.S. inventory asset based revolving credit facility in an
aggregate committed amount of $150.0 million ("Inventory Facility") for a U.S. combined commitment of $750.0 million
("Combined Commitment"). Additionally, the Company entered into a Canadian term loan facility in Canada in an aggregate
principal amount of $300.0 million Canadian dollars, the equivalent to approximately $225.0 million USD, with a five-year
maturity ("Canadian Term Loan"). In connection with these financing transactions, the Company incurred approximately $6.7
million in financing transaction costs, of which approximately $5.4 million was capitalized as deferred financing costs and will
be amortized through maturity using the straight-line method, and approximately $1.3 million was expensed as incurred.
On November 16, 2018, Anixter amended the Receivables and Inventory Facilities to extend the maturity date from
October 5, 2020 to November 16, 2023. An additional $2.1 million of deferred financing costs were capitalized and will be
amortized through maturity.
Receivables Facility
On October 5, 2015, Anixter, through its wholly-owned subsidiary, ARC, entered into a Receivables Facility, which is a
receivables based revolving credit facility in an aggregate committed amount of $600.0 million. Borrowings under the
Receivables Facility are secured by a first lien on all assets of ARC and supported by an unsecured guarantee by Anixter
International, Inc.
The Receivables Facility has a borrowing base of 85% of eligible receivables, subject to certain reserves.
In connection with the entry into the Receivables Facility, on October 5, 2015, Anixter Inc. and ARC entered into a Third
Amended and Restated Receivables Sale Agreement (the "Amended and Restated RSA"), which amended and restated the
existing Second Amended and Restated Sales Agreement. The purpose of the Amended and Restated RSA is (i) to reflect the
entry into the Receivables Facility and the termination of the Second Amended and Restated Receivables Purchase Agreement,
and (ii) to include in the receivables sold by Anixter Inc. to ARC receivables originated by Tri-Northern Holdings, Inc. and its
subsidiaries (collectively, the "Tri-Ed Subsidiaries") and subsidiaries acquired in the Power Solutions acquisition (the "Power
Solutions Subsidiaries").
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