Cognizant Technology Solutions Corp: enters new $2,400,000,000 credit facilities

What happened

• Cognizant Technology Solutions Corp filed an 8-K reporting that on Oct 5, 2026 it entered into a credit agreement among the Borrower, Cognizant Worldwide Limited and certain financial institutions, with JPMorgan Chase Bank, N.A. as administrative agent, providing a $550,000,000 term loan facility and a $1,850,000,000 revolving credit facility (the New Credit Facilities).
• Proceeds from the $550,000,000 term loan were used primarily to repay the prior term loan; the Borrower also borrowed approximately $1,000,000,000 under the Revolving Credit Facility on the Closing Date, primarily to repay the prior revolving credit facility. The New Credit Facilities are unsecured and mature on Oct 3, 2031.

Key details

• Term loan: $550,000,000; no scheduled payments in the first year; thereafter quarterly installments of $6,875,000, with the balance due on Oct 3, 2031.
• Revolving facility: $1,850,000,000; may be borrowed, repaid and reborrowed until Oct 3, 2031.
• Interest: at the Borrowers’ option either a Term Benchmark or ABR Rate plus an applicable margin, initially 0.875% for Term Benchmark and RFR loans and 0% for ABR Rate loans; applicable margin set by a grid tied to the Borrower’s index debt rating or the Company’s Leverage Ratio.
• Increase option: Borrowers may request increases aggregating up to $1,200,000,000 plus voluntary prepayments, subject to conditions.
• Covenants: customary affirmative and negative covenants and a financial covenant limiting the Leverage Ratio to 3.50:1.00 (or, at the Borrower’s election for up to four quarters after certain material acquisitions, 4.00:1.00), tested quarterly.

Why it may matter

• This filing reports Item 1.01 (entry into a material definitive agreement) and Item 2.03 (creation of a direct financial obligation) relating to the new unsecured credit facilities and related terms.
• The filing does not show why the insider traded or why the company acted.