Arrow Electronics Enters Material Agreement, New Financial Obligation

TL;DR

**Arrow just took on a new material financial obligation; details to follow.**

AI Summary

Arrow Electronics, Inc. filed an 8-K on January 2, 2024, reporting an event on December 27, 2023, concerning an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation." This filing indicates that the company has entered into a significant new financial commitment or agreement. For investors, this matters because new material agreements or financial obligations can impact the company's future cash flow, debt levels, and overall financial health, potentially affecting stock valuation.

Why It Matters

This filing signals a new, potentially significant financial commitment for Arrow Electronics, which could affect its balance sheet and future profitability. Investors should monitor for details on the nature and terms of this agreement.

Risk Assessment

Risk Level: medium — The filing indicates a new material financial obligation without providing specific details, creating uncertainty about its potential impact on the company's financial health.

Analyst Insight

A smart investor would await further disclosures from Arrow Electronics regarding the specifics of the material definitive agreement and financial obligation before making any investment decisions, as the current filing lacks crucial details.

Key Players & Entities

• ARROW ELECTRONICS, INC. (company) — the registrant filing the 8-K
• December 27, 2023 (date) — date of the earliest event reported
• January 2, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Arrow Electronics will provide further details on the material definitive agreement and financial obligation in a subsequent filing or earnings call. (Arrow Electronics, Inc.) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $1 — ange on which registered Common Stock, $1 par value ARW New York Stock Exchan

Filing Documents

• arw-20231227x8k.htm (8-K) — 56KB
• arw-20231227xex10d1.htm (EX-10.1) — 449KB
• 0001558370-24-000014.txt ( ) — 685KB
• arw-20231227.xsd (EX-101.SCH) — 4KB
• arw-20231227_def.xml (EX-101.DEF) — 3KB
• arw-20231227_lab.xml (EX-101.LAB) — 16KB
• arw-20231227_pre.xml (EX-101.PRE) — 11KB
• arw-20231227x8k_htm.xml (XML) — 5KB

01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT On December 27, 2023, Arrow Electronics China Limited, as an original seller and sellers' agent (" Arrow Electronics "), and Arrow/Components Agent Limited, as an original seller (" Arrow Components " and Arrow Electronics, each an " Original Seller " and collectively, the " Original Sellers ") entered into a Limited Recourse Receivables Discounting Framework Agreement (the " Receivables Purchase Agreement ") with The Hongkong and Shanghai Banking Corporation Limited (the " Bank ") to sell up to USD 300 million (or such higher amount as may be agreed from time to time) of trade receivables originated by the Original Sellers (the " Transaction "). The initial term of the Transaction is one year, subject to any extension as the Bank may agree. Closing of the Transaction occurred on December 28, 2023. Each Original Seller has made certain representations, warranties, and undertakings. These representations, warranties and undertakings: (i) have been made only for the purpose of allocating risk pursuant to the Receivables Purchase Agreement; (ii) are, in certain cases, subject to materiality qualifications contained in the Receivables Purchase Agreement which may differ from what may be viewed as material by investors; and (iii) were made as of the date of the Receivables Purchase Agreement and will be made on such other date(s) as specified therein. The purchase of the receivables by the Bank under the Receivables Purchase Agreement during the availability period is subject to agreed eligibility criteria and limits being met. The Receivables Purchase Agreement provides for the payment by an Original Seller to the Bank of a sum equal to loss suffered by the Bank as a result of certain events, including but not limited to, any representation made by the relevant Original Seller in connection with the relevant purchased receivable being incorrect in any material respect when made. The Receivables Purchase Agreement

01 FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) EXHIBITS Exhibit Number Description 10.1 Limited Recourse Receivables Discounting Framework Agreement, dated as of December 27, 2023, by and among The Hongkong and Shanghai Banking Corporation Limited, Arrow Electronics China Limited and Arrow/Components Agent Limited* 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * The Company agrees to furnish supplementally a copy of any omitted exhibit or schedule to the Securities and Exchange Commission upon request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARROW ELECTRONICS, INC. Date: January 2, 2024 By: /s/ Carine Jean-Claude Name: Carine Jean-Claude Title: Senior Vice President, Chief Legal Officer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR