In the second quarter of fiscal year 2023, the Company entered into a Receivables Purchase Agreement (the “RPA”), by and among MSC A/R Holding Co., LLC, a wholly owned subsidiary of the Company (the “Receivables Subsidiary”), as seller, the Company, as master servicer, certain purchasers from time to time party thereto (collectively, the “Purchasers”), and Wells Fargo Bank, National Association, as administrative agent. Under the RPA, the Receivables Subsidiary may sell certain eligible receivables to the Purchasers. The RPA, which was scheduled to mature on December 19, 2025, was amended in December 2025. The amendment provided for, among other things, an extension of the scheduled termination date to December 8, 2028, the addition of a joining purchaser and an increase to the maximum aggregate commitment by $50,000 to a total of $350,000. The RPA continues to include customary representations and warranties for facilities of this type.

The Company continues to provide collection services for the receivables sold to the Purchasers. As cash is collected on sold receivables, the Receivables Subsidiary continuously sells new qualifying receivables to the Purchasers so that the total principal amount outstanding of receivables sold is approximately $300,000. During the thirteen-week period ended November 29, 2025, receivables sold and collected under the RPA was $306,452 . The total principal amount outstanding of receivables sold was approximately $300,000 as of November 29, 2025 and August 30, 2025. The amount of receivables retained and pledged as collateral by the Company as of November 29, 2025 and August 30, 2025 was $368,297 and $359,465, respectively.

The receivables sold incurred fees due to the Purchasers of $3,644 and $4,202 during the thirteen-week periods ended November 29, 2025 and November 30, 2024, respectively, which were recorded within Other expense, net in the unaudited Condensed Consolidated Statements of Income. The financial covenants under the RPA are substantially the same as those under the Credit Facilities (as defined below). See Note 8, “Debt” for more information about these financial covenants.