8-KMaterial AgreementsFinancial EventsExhibits & Filings

F5, INC. 8-K Report, Material Agreement (May 3, 2017)

Filed May 3, 2017For Securities:FFIV

Summary

F5, Inc. (FFIV) filed an 8-K on May 3, 2017, to announce the execution of a material definitive agreement, specifically a new office lease for its corporate headquarters. The company is leasing approximately 515,000 rentable square feet in Seattle, Washington, which is a significant expansion and relocation. This lease represents a substantial long-term commitment for F5, with a 14.5-year term initially expected to commence around April 1, 2019, and aggregate base rent payments projected at approximately $359.5 million. Investors should note this as a material increase in future operational costs and a strategic decision to consolidate operations into a new, larger headquarters. The filing also confirms that this lease constitutes a direct financial obligation for the company.

Key Highlights

  • 1F5 Networks entered into a significant office lease agreement for its new corporate headquarters.
  • 2The new headquarters will be located at 801 Fifth Avenue, Seattle, Washington, encompassing approximately 515,000 rentable square feet.
  • 3The lease has a substantial term of 14.5 years, commencing likely in early 2019.
  • 4Aggregate base rent payments over the lease term are estimated to be approximately $359.5 million.
  • 5The company has options to extend the lease for up to three additional five-year periods, subject to market rent adjustments.
  • 6This lease represents a material definitive agreement and a direct financial obligation for F5 Networks.
  • 7The filing incorporates by reference the lease agreement as an exhibit.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose F5 Networks' entry into a material definitive agreement, specifically a long-term office lease for its new corporate headquarters in Seattle, Washington.

The company anticipates aggregate base rent payments of approximately $359.5 million over the 14.5-year term of the lease. Additionally, F5 will be responsible for other costs like build-out expenses, operating expenses, taxes, insurance, and utilities.

The lease commencement date is set for the latter of April 1, 2019, or 10 months after the substantial completion of the premises' construction. This suggests the new headquarters will likely become operational sometime in 2019.

Yes, the company has options to extend the lease for up to three additional five-year terms. However, any rent adjustments during these renewal periods would be based on market rates at the time of renewal.