The proceeds will be used by Macy’s and its subsidiaries to finance accrued payables obligations and finance the purchase of new inventory for upcoming merchandising seasons by the Macy’s group and to provide the Macy’s group with liquidity through the ongoing COVID-19 pandemic. no event of default has occurred and is continuing.Shearman & Sterling advised Bank of America (as lead arranger, agent and letter of credit issuer) and certain other asset-based lenders who have provided Macy’s Inventory Funding LLC, a newly formed financing vehicle, with a $3.15 billion asset-based inventory financing.the aggregate face amount of CP outstanding does not exceed the note issuance limit (the note issuance limit is CFSC’s commitment amount available under the dealer loan agreement) and.The following conditions, among others, must be satisfied prior to DCAT issuing CP: CFSC will not purchase dealer loans if there is a voluntary or involuntary bankruptcy of DCAT.Ĭonditions Precedent and Stop Issuance Events In the event of a dealer default, DCAT will assign its rights in its collateral to CFSC. DCAT will then apply the funds on deposit in the operating account to repay maturing CP. DCAT will sell the loan to CFSC and deposit the funds into DCAT’s operating account with US Bank as Issuing and Paying Agent. In the event a dealer’s loan is not paid at maturity, CFSC is obligated, under the terms of the dealer loan purchase agreement, to buy the loan at its face amount (principal plus interest to maturity). Secured borrowers also enter into a security agreement in favour of CFSC as agent for DCAT, whereby the dealer (or dealer affiliate) loans are collateralised with non-parts inventory and receivables.Ĭredit Enhancement (CE) and Liquidity SupportĬE and liquidity support for the DCAT programme are provided by CFSC in the form of a dealer loan purchase agreement. Through the issuance of CP, DCAT makes loans to each dealer, pursuant to the terms of a loan agreement that is entered into between DCAT and each respective borrower. CFSC is a wholly owned subsidiary of Caterpillar that finances retail instalment sales contracts and leases arising from the sale and lease of Caterpillar products. Dealers or their affiliates may borrow from DCAT by submitting an application letter for approval to Caterpillar Financial Services Corporation (CFSC, rated A/F1) along with other relevant financial information, including both audited annual financial statements and unaudited interim financial statements. Each dealer will also be a shareholder of the Cooperative Association of Tractor Dealers (CATD) or an affiliate of a shareholder. The Caterpillar equipment dealers (the dealers) operate under a sales and services agreement with Caterpillar. Loans made by DCAT to eligible equipment dealers shall have the same maturity as the underlying CP. The loans are applied to finance inventories of new and used equipment held for sale, rent, or for the purpose of financing receivables. DCAT issues match-funded CP with a maximum maturity of 270 days to finance the loans. equipment dealers (Caterpillar, rated A/F1). DCAT makes secured and unsecured loans to eligible and authorised Caterpillar, Inc. The programme was originally established in 1992 under the name Dealers Capital Access Trust. DCAT LLC (DCAT) is a special purpose, bankruptcy-remote Delaware limited liability corporation formed in 2012.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |