Flex Ltd.: enters $3,300,000,000 364-day credit facility

What happened The filing says Flex Ltd. entered into a Credit Agreement with the lenders party thereto and Citibank, N.A., as administrative agent on Sep 29, 2026, providing a senior term loan credit facility in an aggregate committed amount of $3,300,000,000. The Credit Facility was not drawn on the Closing Date and, subject to conditions, may be borrowed in a single advance during the availability period; it will mature 364 days after the date on which it is funded.

Key details

• Loans bear interest at a floating rate chosen by the company: Term SOFR plus an applicable margin or the Base Rate plus an applicable margin, with the margin determined by the company’s senior unsecured long-term debt ratings.
• The Credit Agreement includes customary covenants and events of default and requires maintenance of a Debt/EBITDA Ratio not to exceed 4.50 to 1.00 and an Interest Coverage Ratio of not less than 3.00 to 1.00 as of the last day of any fiscal quarter.
• Proceeds, together with cash on hand and proceeds of certain other debt or equity issuances, are intended to finance a portion of the cash consideration for the company’s acquisition of EPC Power Corp. and related assets (previously disclosed Sep 4, 2026), to pay related fees and expenses and for other permitted purposes.
• The Credit Agreement’s effectiveness automatically and permanently reduced, on a dollar-for-dollar basis, the commitments under the company’s existing $4,400,000,000 senior unsecured 364-day bridge facility; obligations under the Credit Agreement are not guaranteed by any subsidiary, though the company may cause subsidiaries to become guarantors upon notice.

Why it may matter This 8-K reports Item 1.01 (entry into a material definitive agreement) and Item 2.03 (creation of a direct financial obligation), covering the Credit Agreement that establishes the new senior term loan credit facility and related financial covenants and uses of proceeds. The filing does not show why the company acted.