PLEXUS CORP 8-K

What Happened

• Plexus Corp. announced on June 5, 2026 that it entered into a Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. as Administrative Agent and a group of lenders. The agreement replaces the prior credit agreement dated June 9, 2022 and matures on June 5, 2031.
• The facility is a revolving credit line with a $500 million initial commitment and an option, subject to conditions, to increase commitments by $250 million (to $750 million total). The company filed the agreement as Exhibit 10.1 to its Form 8‑K dated June 8, 2026.

Key Details

• Revolving commitment: $500 million, expandable by $250 million (to $750 million) at company election.
• Maturity date: June 5, 2031. Administrative Agent: JPMorgan Chase Bank, N.A.
• Pricing: Borrowings at alternate base rate, Term SOFR, EURIBOR, or Daily Simple SONIA plus a margin that varies with the company’s leverage; unused-commitment fee 10–25 bps based on leverage.
• Financial covenants (measured as of the last day of any four consecutive fiscal quarters): Interest coverage ratio ≥ 3.00:1 (EBITDA to cash interest expense) and Leverage ratio ≤ 3.50:1 (total debt to EBITDA), with a temporary increase to 4.25:1 permitted for certain material acquisitions. Certain unrestricted cash up to $150 million may be excluded when calculating indebtedness for pricing and covenants.

Why It Matters

• This credit agreement establishes Plexus’s primary committed bank financing and creates a material direct financial obligation, providing liquidity and borrowing capacity through mid-2031.
• The agreement’s pricing and covenant tests tie borrowing cost and flexibility to the company’s leverage and EBITDA. That means changes in earnings or debt levels can affect interest costs and the company’s room to borrow or pursue larger acquisitions (though a temporary higher leverage cap is allowed for certain deals).
• Investors should view this as a key component of Plexus’s capital structure and liquidity planning; monitoring leverage, EBITDA trends, and cash balances will be important to assess covenant headroom and borrowing cost risk going forward.