ACCOUNTS RECEIVABLES

9 Months Ended

Sep. 30, 2023

NOTE 5. ACCOUNTS RECEIVABLES

We maintain a $425.0 million Receivables Financing Agreement (Receivables Financing Agreement) that is scheduled to mature on October 14, 2025. 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 net leverage ratio covenant that is contained in the $1,550.0 million Senior Credit Facility. As of September 30, 2023, December 31, 2022 and September 30, 2022, we had $350.0 million, $300.0 million and $300.0 million, respectively, drawn under the agreement. As of September 30, 2023, $489.4 million of our trade receivables were pledged as collateral and we had $7.2 million of additional borrowing capacity under the Receivables Financing Agreement, which was limited by our borrowing base.

Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $175.5 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €22.0 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 condensed statements of cash flows. The following table summarizes the AR Facilities activity:


	September 30,
	2023		2022
	($ in millions)
Balance at beginning of year	$	111.8	$	83.3
Gross receivables sold	749.5		769.3
Payments received from customers on sold accounts	(788.6)		(761.3)
Balance at end of period	$	72.7	$	91.3

The factoring discount paid under the AR Facilities is recorded as interest expense on the condensed statements of operations. The factoring discount was $1.3 million and $0.9 million for the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $1.8 million for the nine months ended September 30, 2023 and 2022, respectively. The

agreements are without recourse and therefore no recourse liability had been recorded as of September 30, 2023, December 31, 2022 or September 30, 2022.

Our condensed balance sheets included an allowance for doubtful accounts receivables of $12.8 million, $12.6 million and $12.5 million and other receivables of $78.0 million, $71.6 million and $58.0 million at September 30, 2023, December 31, 2022 and September 30, 2022, respectively, which were included in receivables, net.