Michigan | 0-22684 | 38-1465835 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | Identification No.) |
2801 East Beltline, NE | ||
Grand Rapids, Michigan | 49525 | |
(Address of principal executive offices) | (Zip Code) |
On March 8, 2006, the Registrant and its wholly-owned subsidiaries (the Company) entered into an accounts receivable sale agreement with Fifth Third Bank. Significant terms of the Agreement include: |
- | The Company sells specific receivables to the bank at an agreed upon price. | ||
- | The Company services the receivables sold and outstanding on behalf of the bank in return for an agreed-upon service fee. | ||
- | The Company receives an incentive servicing fee, which the Company accounts for as a retained interest in the receivables sold. The Companys retained interest is determined based on the fair market value of anticipated collections in excess of the Agreed Base Value of the receivables sold. Appropriate valuation allowances are recorded against the retained interest. | ||
- | The maximum amount of receivables, net of retained interest, which may be sold and outstanding at any point in time under the program is $50 million. | ||
- | The agreement is 3-year committed facility. |
A copy of the Agreement is attached as Exhibit 10 to this Current Report. |
(c) | Exhibits | ||
10 | Program for Accounts Receivable Transfer (PARTS) Agreement dated March 8, 2006. |
2
UNIVERSAL FOREST PRODUCTS, INC. | ||||
(Registrant) |
||||
Dated: March 10, 2006 |
||||
By: | /s/ Michael R. Cole | |||
Michael R. Cole, Chief Financial Officer and Treasurer | ||||
3