Airgas announced the signing of a two-year, $295 million accounts receivable securitization agreement, replacing the previous $345 million agreement which expires this month.
The new agreement, backed by commercial banks rated double-A or higher, provides Airgas with funding at a cost that is 95 basis points above the commercial bank conduits’ costs of issuing 'A1'/'P1' commercial paper.
The firm’s marginal cost of funding under this agreement is 65 basis points higher than the previous agreement. The new agreement, which expires March 16, 2012, will cover all $295 million of accounts receivable sold and outstanding under the previous agreement.
Airgas is a distributor of industrial, medical, and specialty gases and related equipment, safety supplies and MRO products and services to industrial and commercial markets.