Xerox Holdings Corporation (NASDAQ:XRX) and its subsidiary, Xerox Corporation (NASDAQ: XRX ), have entered into an agreement with Citibank, N.A. and other lenders to increase their credit line from $300 million to $425 million, as reported in a recent SEC filing. The amendment, effective June 10, 2024, also adjusts certain covenant thresholds.
The Norwalk, Connecticut-based company, known for its computer peripheral equipment, has amended its existing Asset-Based Lending (ABL) Credit Agreement from May 22, 2023. The increased credit facility aims to bolster Xerox's liquidity and financial flexibility.
According to the 8-K filing, all other terms of the original ABL Credit Agreement remain unchanged. The details of the amendment were outlined in Exhibit 10.1 of the filing, which specifies the terms and conditions of the agreement.
This financial move comes as Xerox continues to navigate the competitive tech industry landscape. The additional funds may be used for general corporate purposes, including working capital, capital expenditures, and potential acquisitions.
The filing did not disclose specific plans for the use of the increased credit facility. However, the adjustment of covenants could suggest a strategic effort by Xerox to maintain operational agility amidst market fluctuations.