FLEX secures $1.45 billion credit facility with November 2027 maturity

Flex Ltd. (NASDAQ: FLEX) entered into a $1.45 billion senior term loan credit facility on May 29, 2026, according to a company statement. The credit agreement was arranged with multiple lenders and Citibank, N.A. serving as administrative agent.

The credit facility matures on November 29, 2027 and was fully funded at closing. Interest rates on loans under the agreement float based on either Term SOFR or the Base Rate, plus applicable margins determined by the company's senior long-term unsecured debt ratings.

The agreement requires 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 each fiscal quarter. The company must also adhere to restrictions on incurring additional debt, granting liens, disposing of material assets, and making certain business changes.

Proceeds from the credit facility will be used for general corporate purposes, including refinancing an existing 364-day facility that partially funded the company's acquisition of Electrical Power Products, Inc. The previous facility was paid in full and terminated upon the new agreement's effectiveness.

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

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