Flex Ltd. entered into a definitive credit agreement on September 29, 2026, establishing a senior term loan credit facility. The agreement was executed among Flex Ltd. as the borrower, the participating lenders, and Citibank, N.A., acting as the administrative agent. The facility provides an aggregate committed amount of $3.3 billion. As of the closing date, the facility had not been drawn.
The credit facility is designed to allow the company to borrow a single advance during its availability period. The facility matures 364 days from the date of funding. Interest rates are variable and determined by the company’s senior unsecured long-term debt ratings, calculated as either Term SOFR plus an applicable margin or the Base Rate plus an applicable margin.
The agreement includes customary covenants that restrict the company and its subsidiaries from incurring additional indebtedness, granting liens, disposing of material assets, merging, or materially changing their business. It also requires the maintenance of specific financial ratios, including a Debt/EBITDA Ratio not to exceed 4.50 to 1.00 and an Interest Coverage Ratio of not less than 3.00 to 1.00 as of the last day of any fiscal quarter.
According to the filing, the proceeds from this facility, combined with cash on hand and funds from other debt or equity issuances, are intended to finance a portion of the cash consideration for the acquisition of EPC Power Corp. and related assets, as previously disclosed. The effectiveness of the new agreement automatically and permanently reduces the commitments under Flex’s existing $4.4 billion senior unsecured 364-day bridge facility, which was described in a prior filing on September 4, 2026.
