Summary
On October 19, 2011, Flextronics International Ltd. (now Flex Ltd.) announced the entry into a new $2.0 billion credit facility, replacing its existing credit agreement. This new facility includes a $1.5 billion revolving credit facility and a $500 million term loan. The company has already utilized part of the term loan to repay $480 million of its 2007 term loan facility. This refinancing provides Flextronics with enhanced financial flexibility and maturity extensions. The facility matures on October 19, 2016, and offers the company the option to increase its borrowing capacity by an additional $500 million. While the facility is unsecured, it includes customary covenants related to debt, investments, asset disposals, and financial ratios, such as a maximum total debt to EBITDA ratio and a minimum interest coverage ratio.
Key Highlights
- 1Flextronics International Ltd. entered into a new $2.0 billion credit facility on October 19, 2011.
- 2The new facility replaces the company's previous $2.0 billion credit facility.
- 3It comprises a $1.5 billion revolving credit facility and a $500 million term loan facility.
- 4The company used $480 million of the term loan to repay outstanding debt under its 2007 term loan facility.
- 5The new credit facility matures on October 19, 2016.
- 6There is an option to increase commitments or add incremental term loan facilities up to an aggregate of $500 million.
- 7The credit facility is unsecured and includes standard covenants and financial ratio requirements.