Item 1.01 Entry Into Material Agreement.
On
Under the PSA, the Originators will sell all of their eligible receivables and
related rights thereof to the SPE. From time to time, pursuant to the RPA, the
SPE will, in turn, sell an undivided ownership interest in a portion of
those receivables to
Ashland will be responsible for the initial servicing, administration and collection of the receivables, and, together with the Company, has also provided a customary guaranty of performance to the administrative agent with respect to certain obligations of the Originators and the servicer under the A/R Facility. However, none of the Originators, Ashland or the Company has guaranteed the collectability of the accounts receivable or the creditworthiness of the obligors thereunder. The SPE has provided a customary guaranty of payment with respect to the prompt payment of the receivables sold under the A/R Facility by the obligors of such receivables.
The investments by the Purchasers under the RPA shall accrue a yield at a fluctuating rate that is either the applicable commercial paper rate (as defined in the RPA) for conduit lenders issuing notes or, for investments funded other than through the issuance of notes, at the applicable LMIR or Adjusted LIBOR (each as defined in the RPA).
The A/R Facility contains various customary affirmative and negative covenants and default, indemnification and termination provisions, and the RPA provides for acceleration of amounts owed upon the occurrence of certain specified events.
The foregoing summary of the A/R Facility does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the PSA and RPA, which are filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and incorporated herein by reference.
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 regarding the A/R Facility is incorporated by reference into this Item 2.03.
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Item 9.01. Financial Statements and Exhibits. (d) Exhibits 10.1 Second Amended and Restated Purchase and Sale Agreement, datedMarch 17, 2021 , by and amongAshland LLC andAshland Specialty Ingredients G.P ., as originators,Ashland LLC , as initial servicer, andCVG Capital III LLC , as purchaser. 10.2 Receivables Purchasing Agreement, datedMarch 17, 2021 , by and amongCVG Capital III LLC ,PNC Bank, National Association , as administrative agent,PNC Bank Capital Markets LLC , as structuring agent,Ashland LLC , as initial servicer, and certain other persons from time to time party thereto. 104 Cover Page Interactive Data File (embedded with the Inline XBRL document) 3
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