TTM TECHNOLOGIES INC 8-K

What Happened

• On June 1, 2026, TTM Technologies, Inc. announced a Second Amended & Restated Credit Agreement with JPMorgan Chase Bank, N.A. as Administrative Agent that provides a repriced and upsized $400.0 million senior secured Term Loan Facility and a new senior secured Revolving Credit Facility with committed capacity up to $1.0 billion. Proceeds from the Term Loan were used to refinance the prior term loan (about $340.4 million outstanding) and pay related fees and expenses. The Company terminated its prior U.S. and Asia ABL credit agreements and repaid all obligations under those facilities.
• Key commercial terms: Term Loan interest at Term SOFR + 1.75% (a 50 bps reduction versus the prior term loan); quarterly principal repayments totaling 1% of initial term loan per year; Term Loan maturity remains May 30, 2030. Revolving facility matures in May 2031, carries interest at Term SOFR + 1.25%–2.25%, includes a $200.0 million letter of credit subfacility, and unused-commitment fees of 0.15%–0.35% (tiered by leverage). Obligations are guaranteed by the Company’s domestic subsidiaries and secured by substantially all tangible and intangible assets (subject to customary exclusions and a 65% pledge cap for certain foreign subsidiaries).

Key Details

• Closing date: June 1, 2026; press release issued June 3, 2026.
• Term Loan size: $400.0 million; prior outstanding term loan refinanced: $340.4 million.
• Revolving Credit Facility: up to $1.0 billion capacity; letter of credit sublimit $200.0 million; maturity May 2031.
• Financial covenants (applicable to the Revolving Credit Facility): minimum consolidated interest coverage ratio ≥ 2.50:1.00 and maximum consolidated leverage ratio ≤ 4.50:1.00 (temporary increase to 5.00:1.00 for acquisition holiday).

Why It Matters

• Liquidity & cost: The transaction reduces TTM’s borrowing cost (50 bps on the term loan) and significantly increases committed revolving capacity (replacing two $150M ABL facilities), improving short-term liquidity and flexibility for working capital and general corporate purposes.
• Security & restrictions: The new facilities are secured and guaranteed, and include customary affirmative and negative covenants plus restrictions on dividends and other equity distributions—factors investors should watch for when assessing cash return potential and strategic flexibility.
• Financial constraints: The maintenance covenants (interest coverage and leverage) create measurable leverage limits that may affect future financing, dividend decisions, or acquisitions; however, an acquisition holiday provides temporary covenant relief for qualifying deals.