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| PSSI > SEC Filings for PSSI > Form 8-K on 18-Mar-2009 | All Recent SEC Filings |
18-Mar-2009
Triggering Events That Accelerate or Increase a Direct Financial Obligation
In March 2004, PSS World Medical, Inc. (the "Company") issued $150.0 million principal amount of 2.25% convertible senior notes due March 15, 2024 (the "Notes"). Interest on the Notes is payable semiannually in arrears on March 15 and September 15 of each year, plus other considerations, including contingent interest, if applicable. On each of March 15, 2009, March 15, 2014, and March 15, 2019, holders of the Notes have the option to require the Company to repurchase any Notes at a cash repurchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, and other considerations, including contingent interest, if applicable.
On March 15, 2009, the holders of $149.98 million in principal face value of Notes exercised their contractual rights to require the Company to repurchase their Notes for a cash repurchase price equal to 100% of the principal face value of Notes to be repurchased plus accrued and unpaid interest. The Company used approximately $101.7 million in available cash on hand and $50 million from its asset-based revolving line of credit ("LOC") to fund the repurchase of such Notes on March 16, 2009, for approximately $151.7 million. The holders of $.02 million in principal face value of Notes did not exercise their contractual rights to require the Company to repurchase their Notes, and, accordingly, such Notes remain outstanding.
The LOC, which matures on September 30, 2012, permits maximum borrowings of up to $200.0 million and may be increased to $250.0 million at the Company's discretion. Availability of borrowings under the LOC depends upon a borrowing base calculation consisting of accounts receivable and inventory, subject to satisfaction of certain eligibility requirements, less any outstanding letters of credit. Borrowings under the LOC bear interest at the bank's prime rate plus an applicable margin based upon availability of borrowings or at LIBOR plus an applicable margin based upon availability of borrowings.
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