FLEX Secures New $1.45 Billion Senior Term Loan Credit Facility

Flex Ltd. has entered into a new Credit Agreement on May 29, 2026, providing a senior term loan facility of $1.45 billion. The new facility, administered by Citibank, N.A., matures in November 2027 and was fully funded at closing. Proceeds will be used for general corporate purposes, notably to refinance an existing facility that funded the recent acquisition of Electrical Power Products, Inc.

Key Details

• Facility: Entered into a new Credit Agreement for a senior term loan credit facility totaling $1.45 billion, which was fully funded on May 29, 2026.
• Terms: The loan matures on November 29, 2027, and bears interest at a floating rate based on either Term SOFR or a Base Rate, plus an applicable margin tied to the company's debt ratings.
• Use of Proceeds: Funds will be used for general corporate purposes, including the refinancing of an existing 364-day facility used for the acquisition of Electrical Power Products, Inc.
• Covenants: The agreement includes financial covenants requiring a maximum Debt/EBITDA Ratio of 4.00 to 1.00 and a minimum Interest Coverage Ratio of 3.00 to 1.00.