BORROWINGS:

Borrowings consist of the following:



	As of
	February 28, 2017			November 30, 2016
SYNNEX AR arrangement (see Note 9 - Accounts Receivable Arrangements)	$	298,700		$	262,900
SYNNEX U.S. credit agreement	578,125			585,938
SYNNEX Canada term loan and revolver	3,941			4,064
SYNNEX Infotec credit facility	97,544			81,251
India credit facilities	10,217			12,000
Other borrowings and capital leases	23,462			20,813
Total borrowings	1,011,989			966,966
Less: unamortized debt discount and issuance costs	(2,738		)	(2,982		)
Total borrowings, net of unamortized debt discount and issuance costs	1,009,251			963,984
Less: Current portion	(418,852		)	(362,889		)
Noncurrent portion	$	590,399		$	601,095

SYNNEX U.S. credit agreement

In November 2013, the Company entered into a senior secured credit agreement (the “U.S. Credit Agreement”) which was comprised of a $275,000 revolving credit facility and a $225,000 term loan. In May 2015, the U.S. Credit Agreement was amended to increase the term loan to $625,000. The Company may request incremental commitments to increase the principal amount of revolving loans or term loans available under the U.S. Credit Agreement up to $350,000. The U.S. Credit Agreement matures in May 2020.

Interest on borrowings under the U.S. Credit Agreement can be based on LIBOR or a base rate at the Company's option. Loans borrowed under the U.S. Credit Agreement bear interest, in the case of LIBOR loans, at a per annum rate equal to the applicable LIBOR, plus a margin which may range from 1.50% to 2.25%, based on the Company's consolidated leverage ratios, as determined in accordance with the U.S. Credit Agreement. Loans borrowed under the U.S. Credit Agreement that are not LIBOR loans, and are instead base rate loans, bear interest at a per annum rate equal to (i) the greatest of (A) the Federal Funds Rate plus a margin of 1/2 of 1.0%, (B) LIBOR plus 1.0% per annum, and (C) the rate of interest announced, from time to time, by the agent, Bank of America, N.A, as its “prime rate,” plus (ii) a margin which may range from 0.50% to 1.25%, based on the Company's consolidated leverage ratios as determined in accordance with the U.S. Credit Agreement. The unused revolving credit facility is subject to a commitment fee ranging from 0.20% to 0.35% per annum, based on the Company's consolidated leverage ratios.

The outstanding principal amount of the term loan is repayable in quarterly installments, in an amount equal to (a) for each of the first eight full calendar quarters ending after the U.S. Credit Agreement was amended in May 2015, 1.25% of the amended principal amount of the term loan, (b) for each of the next four calendar quarters ending thereafter, 1.875% of the amended principal amount of the term loan, (c) for each calendar quarter ending thereafter, 2.50% of the amended principal amount of the term loan and (d) on the May 2020 maturity date of the term loan, the outstanding principal amount of the term loan. The Company’s obligations under the U.S. Credit Agreement are secured by substantially all of the parent company’s and its United States domestic subsidiaries’ assets and are guaranteed by certain of its United States domestic subsidiaries.

As of February 28, 2017 and November 30, 2016, balances outstanding under the term loan component of the U.S. Credit Agreement were $578,125 and $585,938, respectively. There were no borrowings outstanding under the revolving credit facility as of February 28, 2017 and November 30, 2016. There were no letters of credit outstanding as of either February 28, 2017 or November 30, 2016.

SYNNEX Canada revolving line of credit

SYNNEX Canada Limited (“SYNNEX Canada”) has a revolving line of credit arrangement with a group of financial institutions (the “Canadian Revolving Arrangement”) which has a maximum commitment of CAD100,000, or $75,177, and includes an accordion feature to increase the maximum commitment by an additional CAD25,000, or $18,794, to CAD125,000, or $93,971, at SYNNEX Canada's request.

SYNNEX Canada has granted a security interest in substantially all of its assets in favor of the lender under the Canadian Revolving Arrangement. SYNNEX Canada’s obligations under the Canadian Revolving Arrangement are also secured by a pledge over a portion of the equity interests beneficially owned by the Company. The interest rate applicable under the Canadian Revolving Arrangement is equal to (i) the Canadian base rate plus a margin of 0.75% for a Base Rate Loan in Canadian Dollars, (ii) the US base rate plus a margin of 0.75% for a Base Rate Loan in U.S. Dollars, and (iii) the Bankers' Acceptance rate (“BA”) plus a margin of 2.00% for a BA Rate Loan. The Canadian base rate means the greater of (a) the prime rate determined by a major Canadian financial institution and (b) the one-month Canadian Dealer Offered Rate (the average rate applicable to Canadian Dollar bankers' acceptances for the applicable period) plus 1.50%. The US base rate means the greater of (a) a reference rate determined by a major Canadian financial institution for US dollar loans made to Canadian borrowers and (b) the US federal funds rate plus 0.50%. A fee of 0.25% per annum is payable with respect to the unused portion of the commitment. The credit arrangement expires in May 2017. As of February 28, 2017 and November 30, 2016, there were no borrowings outstanding under the Canadian Revolving Arrangement. The Canadian Revolving Arrangement also provides a sublimit of $5,000 for the issuance of standby letters of credit. As of both February 28, 2017 and November 30, 2016, there were no letters of credit outstanding.

SYNNEX Canada term loan

SYNNEX Canada has a term loan associated with the purchase of its logistics facility in Guelph, Canada. The interest rate for the unpaid principal amount is a fixed rate of 5.374% per annum. The final maturity date for repayment of the unpaid principal is April 1, 2017. As of February 28, 2017 and November 30, 2016, the balance outstanding on the term loan was $3,941 and $4,064, respectively.

SYNNEX Infotec credit facility

SYNNEX Infotec has a credit agreement with a group of financial institutions for a maximum commitment of JPY14,000,000, or $124,146. The credit facility is comprised of a JPY6,000,000, or $53,205, term loan and a JPY8,000,000, or $70,941, short-term revolving credit facility. The interest rate for the term loan and revolving credit facility is based on the Tokyo Interbank Offered Rate (“TIBOR”) plus a margin of 0.70% per annum. The unused line fee on the revolving credit facility is 0.10% per annum. This credit facility expires in November 2018. As of February 28, 2017 and November 30, 2016, the balances outstanding under the term loan component of the facility were $53,206 and $52,420, respectively. Balances outstanding under the revolving credit facility were $44,338 and $28,831 as of February 28, 2017 and November 30, 2016, respectively. The term loan can be repaid at any time prior to expiration date without penalty. The Company has guaranteed the obligations of SYNNEX Infotec under this facility.

India credit facilities

The Company's Indian subsidiaries have credit facilities with a financial institution to borrow up to an aggregate amount of $22,000. The interest rate is the higher of the bank's minimum lending rate or LIBOR plus a margin of up to 1.0% per annum. The credit facilities can be terminated at any time by the Company’s Indian subsidiaries or the financial institution. As of February 28, 2017 and November 30, 2016, $10,217 and $12,000, respectively, was outstanding under these facilities.

Other borrowings and capital leases

As of February 28, 2017 and November 30, 2016, the Company recorded $11,829 and $8,694, respectively, on its Consolidated Balance Sheets in obligations attributable to SYNNEX Infotec for the sale and financing of this subsidiary’s approved accounts receivable and notes receivable with recourse provisions and outstanding capital lease obligations.

The Company also maintains other local currency denominated lines of credit with financial institutions at certain locations outside the United States aggregating $29,299. Interest rates and other terms of borrowing under these lines of credit vary from country to country, depending on local market conditions. As of February 28, 2017 and November 30, 2016, $8,867 and $8,737 were outstanding under these facilities.

As of February 28, 2017 and November 30, 2016, the Company had book overdrafts of $2,766 and $3,382. Book overdrafts represent checks issued in excess of balances on deposit in the applicable bank accounts and which have not been paid by the applicable bank at the balance sheet date. Under the terms of the Company's banking arrangements, the respective financial institutions are not legally obligated to honor the book overdraft balances.

The maximum commitment amounts for local currency credit facilities have been translated into United States Dollars at February 28, 2017 exchange rates.

Future principal payments

Future principal payments under the above loans and capital leases as of February 28, 2017 are as follows:



Fiscal Years Ending November 30,
2017 (remaining nine months)	$	407,977
2018	103,999
2019	62,513
2020	437,500
	$	1,011,989

Interest expense and finance charges

The total interest expense and finance charges for the Company's borrowings were $8,551 and $6,633 for the three months ended February 28, 2017 and February 29, 2016, respectively. The variable interest rates ranged between 0.58% and 4.50% during the three months ended February 28, 2017 and between 0.76% and 4.25% during the three months ended February 29, 2016.

Covenant compliance

The Company's credit facilities have a number of covenants and restrictions that, among other things, require the Company to maintain specified financial ratios and satisfy certain financial condition tests. The covenants also limit the Company’s ability to incur additional debt, make or forgive intercompany loans, pay dividends and make other types of distributions, make certain acquisitions, repurchase the Company’s stock, create liens, cancel debt owed to the Company, enter into agreements with affiliates, modify the nature of the Company’s business, enter into sale-leaseback transactions, make certain investments, enter into new real estate leases, transfer and sell assets, cancel or terminate any material contracts and merge or consolidate. As of February 28, 2017, the Company was in compliance with all material covenants for the above arrangements.