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): September 8, 2000
EPLUS INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-28926 54-1817218
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
400 Herndon Parkway, Herndon, Virginia 20170
(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 September 8, 2000, ePlus Technology, inc., a wholly owned subsidiary of ePlus
inc, entered into a floor planning agreement with a $25 million dollar limit
with Deutsche Financial Services Corporation. The agreements included a Business
Financing Agreement, an Agreement for Wholesale Financing, a Paydown Addendum to
the Business Financing Agreement and a Limited Guaranty provided by ePlus inc.
These agreements replaced the previous supplier, BankAmerica Credit, which opted
out of the floor planning business and terminated this type of financing
effective August 16, 2000.
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 floor planning
financing, where the interest expense for the first thirty to forty days is not
charged but is paid for by the supplier/distributor. These floor plan
liabilities are recorded as accounts payable-trade as they are normally repaid
within the thirty to forty day time frame and represent as assigned accounts
payable originally generated with the supplier/distributor. 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
supplier/distributor, but the majority are 40 days on average. The facility is a
two-year commitment but can be terminated with 60 days notice with a termination
charge dependent on the remaining contractual term. The $25 million dollar
facility consists of $19 million dollars of inventory and $6 million dollars of
accounts receivable financing. Interest is assessed at the prime rate minus
one-half of one percent on the outstanding prinicipal debt under the accounts
receivable facility.
In consideration for the extension of this credit facility to ePlus Technology,
inc, the parent, ePlus inc. has agreed to guaranty a maximum aggregate liability
not to exceed $2 million dollars.
EXHIBIT INDEX
The following exhibits are filed as part of this report:
Exhibit
Number Exhibit Description
5.1 Text of Business Financing Agreement dated September 8, 2000
between Deutsche Financial Services Corporation and ePlus Technology,
inc.
5.2 Text of Agreement for Wholesale Financing dated September 8, 2000
between Deutsche Financial Services and ePlus Technology, inc.
5.3 Text of Paydown Addendum to Business Financing Agreement between
Deutsche Financial Services and ePlus Technology, inc.
5.4 Text of Limited Guaranty dated September 8, 2000 between Deutsche
Financial Services and ePlus inc.
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SIGNATURES
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 thereunto duly authorized.
ePlus inc.
Dated September 22, 2000 By: /s/Steven J. Mencarini
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Steven J. Mencarini
Chief Financial Officer
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