What is the main purpose of this 8-K/A filing?

This filing is an amendment (8-K/A) to a previous Current Report (8-K) to re-file two Credit Agreements (Exhibits 4.01 and 4.02) that were initially filed on June 3, 2005. The re-filing includes Schedule II for each exhibit, which was not present in the original submission.

What are the key changes to Flex Ltd.'s revolving credit facility?

The revolving credit facility was amended and restated, increasing its total size from $1.1 billion to $1.35 billion and extending its maturity date from March 2008 to May 2010.

What are the interest rate options and fees associated with the credit facility?

Borrowings can be at the Company's option, either at a base rate plus a margin (0.0% to 0.125%) or the LIBO Rate plus a margin (0.625% to 1.125%). These margins are dependent on the Company's credit ratings. Flex Ltd. also pays quarterly commitment fees on the unutilized portion (0.125% to 0.250%) and potentially utilization fees on the utilized portion, as well as fees for letters of credit.

Are there any restrictions or financial requirements imposed by the credit facility?

Yes, the credit facility is unsecured but contains covenants that restrict the Company and its subsidiaries from certain actions, including incurring specific types of debt, making investments or acquisitions, creating liens, disposing of assets, making non-cash distributions, and engaging in affiliate transactions. It also requires the maintenance of a maximum total indebtedness to EBITDA ratio and a minimum fixed charge coverage ratio.

FLEX 8-K: Material Agreements

Summary

This 8-K/A filing from Flex Ltd. (FLEX) on June 21, 2005, serves as an amendment to a previous filing, primarily to re-file two credit agreements with updated schedules. The key event reported is the amendment and restatement of the Company's revolving credit facility, originally dated May 27, 2005. This amendment significantly increases the facility's size and extends its maturity, indicating strengthened financial flexibility and confidence from lenders. Key changes to the credit facility include an increase in the total principal amount from $1.1 billion to $1.35 billion and an extension of the maturity date from March 2008 to May 2010. The facility is comprised of two tranches, one for the parent company and designated subsidiaries, and another for a U.S. subsidiary. Interest rates are variable, based on either the base rate or LIBOR, plus applicable margins tied to the company's credit ratings. The agreement also includes covenants regarding debt, investments, acquisitions, liens, asset disposals, distributions, and affiliate transactions, alongside financial ratio requirements for leverage and fixed charges. The credit facility is unsecured and carries guarantees from the company and certain subsidiaries.

Key Highlights

1Re-filing of Credit Agreements: The primary purpose of this 8-K/A is to re-file Exhibits 4.01 and 4.02 (Credit Agreements) with appended schedules, correcting or supplementing information from a prior filing.
2Revolving Credit Facility Amendment: Flex Ltd. amended and restated its revolving credit facility on May 27, 2005.
3Increased Facility Size: The total principal amount available under the credit facility was increased from $1.1 billion to $1.35 billion.
4Extended Maturity Date: The maturity date for the credit facility was extended from March 2008 to May 2010.
5Two-Tranche Structure: The credit facility is structured into two components: one for the parent company and subsidiaries ($1.105 billion) and another for a U.S. subsidiary ($245 million).
6Variable Interest Rates: Borrowings are subject to interest based on either a base rate or LIBOR, with margins that vary based on Flex Ltd.'s credit ratings from S&P and Moody's.
7Covenants and Financial Ratios: The agreement includes covenants restricting certain corporate actions and requires the maintenance of specific financial ratios (maximum debt-to-EBITDA, minimum fixed charge coverage ratio).

FLEX LTD. 8-K/A Report, Material Agreement (Jun 21, 2005)

Summary

Key Highlights

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