Flex secures $1.45 billion credit facility for acquisition financing

Flex Ltd. (NASDAQ: FLEX) entered into a $1.45 billion senior delayed draw term loan credit facility on April 30, 2026, with Citibank, N.A. serving as administrative agent.

The credit facility matures 364 days after the first funding date. Loans under the agreement carry floating interest rates based on either Term SOFR plus an applicable margin or the Base Rate plus an applicable margin, with margins determined by the company's senior long-term unsecured debt ratings.

The company plans to use proceeds for general corporate purposes, including financing its acquisition of Electrical Power Products, Inc., which was previously disclosed in a Form 8-K filing on March 30, 2026.

The credit agreement includes financial covenants requiring Flex to maintain a debt-to-EBITDA ratio not exceeding 4.00 to 1.00 and an interest coverage ratio of at least 3.00 to 1.00 as of the last day of any fiscal quarter.

The agreement contains standard restrictions on the company's ability to incur additional debt, grant liens, dispose of material assets, merge with other companies, materially change its business operations, and make certain accounting changes, subject to various exceptions.

The obligations under the credit facility are not guaranteed by any Flex subsidiaries, though the company may designate subsidiaries as guarantors with prior written notice to the administrative agent.

Standard events of default provisions allow lenders to terminate commitments and accelerate outstanding borrowings if triggered.

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