TERADATA CORP /DE/ 8-K

What Happened

• On June 24, 2026, Teradata Corporation announced it entered into a Credit Agreement with Bank of America, N.A., as Administrative Agent and the lenders party thereto, establishing a five-year unsecured revolving credit facility of up to $400 million. The facility replaces Teradata’s prior 2022 credit agreement and the term loan outstanding under the prior agreement was repaid in full in connection with the new Credit Agreement.

Key Details

• Facility size: $400 million revolving credit facility, with a lender-consent option to increase by up to $200 million (accordion).
• Sublimits: $50 million sublimit for standby letters of credit and $50 million sublimit for swingline loans.
• Currency and interest: Teradata may designate up to $100 million of loans in GBP, EUR or JPY. Interest is floating (base rate or SOFR-based) plus margin; margins range from 0.00%–0.50% for base-rate borrowings and 1.00%–1.50% for other borrowings, determined by Teradata’s leverage ratio.
• Term and security: Maturity is June 24, 2031, with up to two one-year extensions by mutual agreement. Borrowings are unsecured but guaranteed by certain material U.S. subsidiaries. The agreement includes customary covenants (e.g., leverage ratio, reporting, liens).

Why It Matters

• This new credit facility secures near-term liquidity and financial flexibility for Teradata while replacing the prior agreement and eliminating the prior term loan. Investors should note the facility’s size, optional accordion, and the interest margin bands tied to leverage—factors that affect borrowing cost and balance sheet flexibility. The unsecured nature (with subsidiary guarantees) and covenant structure are important to monitor for potential impacts on covenant compliance and credit profile.