ACCOUNTS RECEIVABLES

12 Months Ended

Dec. 31, 2020

NOTE 6. ACCOUNTS RECEIVABLES

On July 16, 2019, our existing $250.0 million Receivables Financing Agreement was extended to July 15, 2022 and downsized to $10.0 million with the option to expand (Receivables Financing Agreement). In 2020, we amended the Receivables Financing Agreement to expand the borrowing capacity to $250.0 million. The Receivables Financing Agreement includes a minimum borrowing requirement of 50% of the facility limit or available borrowing capacity, whichever is lesser. The administrative agent for our Receivables Financing Agreement is PNC Bank, National Association. Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. In

addition, the Receivables Financing Agreement incorporates the secured leverage covenant that is contained in the $1,300.0 million senior secured credit facility. For the year ended December 31, 2019, the outstanding balance of the $250.0 million Receivables Financing Agreement of $150.0 million was repaid with proceeds from the issuance of $750.0 million senior notes due 2029. As of December 31, 2020 and 2019, we had $125.0 million and zero, respectively, drawn under the agreement. As of December 31, 2020, $332.8 million of our trade receivables were pledged as collateral. As of December 31, 2020, we had $124.0 million of additional borrowing capacity under the Receivables Financing Agreement.

Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our subsidiaries may sell their accounts receivable up to a maximum of $228.0 million. We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the consolidated statements of cash flows. The following table summarizes the AR Facilities activity:


	December 31,
	2020		2019
	($ in millions)
Beginning Balance	$	63.1	$	132.4
Gross receivables sold	854.3		984.8
Payments received from customers on sold accounts	(868.6)		(1,054.1)
Ending Balance	$	48.8	$	63.1

The factoring discount paid under the AR Facilities is recorded as interest expense on the consolidated statements of operations. The factoring discount for the years ended December 31, 2020, 2019 and 2018 was $1.5 million, $2.9 million and $4.3 million, respectively. The agreements are without recourse and therefore no recourse liability has been recorded as of December 31, 2020.

At December 31, 2020 and 2019, our consolidated balance sheets included other receivables of $62.4 million and $87.4 million, respectively, which were classified as receivables, net.