SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 28, 2004
EPLUS INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-28926 54-1817218
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
400 Herndon Parkway, Herndon, Virginia 20170
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(Address, including zip code, of principal executive office)
(703) 834-5710
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(Registrant's telephone number, including area code)
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Item 5. Other Events
On June 28, 2004, ePlus Technology, inc., a wholly-owned subsidiary of ePlus
inc., modified the current floor planning agreements with GE Commercial
Distribution Finance Corporation ("GECDF") that were originally entered into on
September 8, 2000. The changes to the agreements included an accounts receivable
facility of $15,000,000 and an inventory floorplan credit facility of up to
$50,000,000, provided that at no time will the principal amount outstanding
under the inventory floor plan with the accounts receivable facility and
inventory facility exceed $50,000,000.
On July 1, 2004, the Registrant issued a press release regarding modification of
the current floor planning agreeements with GE Commercial Distribution Finance
Corporation that were originally entered into on September 8, 2000. The press
release is attached hereto as Exhibit 99.1.
Purpose of the Credit Facility
ePlus Technology, inc. uses this credit source to finance its working capital
requirements for inventories and accounts receivable. Their traditional business
as sellers of computer technology assets and related network equipment and
software products is financed through these arrangements known as floorplan
financing, where the interest expense generally for the first thirty to forty
days is not charged but is paid for by the distributor/manufacturer. These
floorplan liabilities are recorded as accounts payable-trade as they are
normally repaid within the thirty to forty day time frame and represent an
assigned accounts payable originally generated with the supplier/manufacturer.
If the thirty to forty day obligation is not paid timely, interest is then
assessed at the stated contractual rates.
Principal Terms of the Credit Facility
The contracts provide for various repayment days dependent on the
distributor/manufacturer, but the majority are 40 days on average. The facility
can be terminated with 90 days notice by either party. The facility is for
inventory financing and accounts receivable financing, and has an aggregate
limit of $50,000,000. Interest is assessed at the prime rate minus one-half of
one percent on the outstanding principal debt under the accounts receivable
facility.
ePlus inc., the parent of ePlus Technology, inc., has guaranteed this facility
up to $10,500,000.
ePlus Group, inc., with the consent of its credit facility supplier, agreed to
guaranty any items it received from but not paid to ePlus Technology, inc.
EXHIBIT INDEX The following exhibits are filed as part of this report:
Exhibit Number Description
5.1 Text of Business Financing Agreement dated September 8, 2000 between Deutsche
Financial Services Corporation (now known as GE Commercial Distribution
Finance Corporation) and ePlus Technology, inc.
5.1A Text of Amendment to Business Financing Agreement and Agreement for Wholesale
Financing dated March 31, 2004 between GE Commercial Distribution Finance
Corporation and ePlus Technology, inc.
5.1B Text of Amendment to Business Financing Agreement and Agreement for Wholesale
Financing dated June 24, 2004 between GE Commercial Distribution Finance
Corporation and ePlus Technology, inc.
5.2 Text of Agreement for Wholesale Financing dated September 8, 2000 between
Deutsche Financial Services (now known as GE Commercial Distribution Finance
Corporation) and ePlus Technology, inc.
5.3 Text of Paydown Addendum to Business Financing Agreement between Deutsche
Financial Services (now known as GE Commercial Distribution Finance Corporation)
Corporation) and ePlus Technology, inc.
5.4 Text of Limited Guaranty dated June 24, 2004 between GE Commercial Distribution
Finance Corporation and ePlus inc.
5.5 Text of Collateral Guaranty dated March 31, 2004 between GE Commercial
Distribution Finance Corporation and ePlus Group, inc.
5.6 Text of Agreement Regarding Collateral Rights and Waiver between GE Commercial
Distribution Finance Corporation and National City Bank, as Administrative
Agent, dated March 24, 2004
99.1 Press Release dated July 1, 2004 regarding modification of the current
floor planning agreements with GE Commercial Distribution Finance Corporation
("GECDF") that were originally entered into on September 8, 2000.
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SIGNATURE
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.
ePlus inc.
By: /s/ Steven J. Mencarini
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Steven J. Mencarini
Date: July 1, 2004 Chief Financial Officer
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