What is the purpose of the new 4.875% Notes due 2029?

The primary purpose of this filing is to report the completion of the offering, which serves as a financing event for Flex Ltd. The proceeds from the offering would generally be used for general corporate purposes, which could include refinancing existing debt, funding operations, or strategic initiatives, though the specific use of proceeds is not detailed in this 8-K.

What are the key terms for investors holding the new 4.875% Notes due 2029?

The notes carry a fixed interest rate of 4.875% per annum, payable semi-annually on June 15 and December 15 each year. They mature on June 15, 2029. Investors should note that Flex Ltd. has the option to redeem these notes at specified prices, and noteholders have the right to demand repurchase in the event of a change of control.

What is the status of Flex Ltd.'s 4.625% Notes due 2020?

Flex Ltd. conducted a cash tender offer for its 4.625% Notes due 2020. The tender offer has expired, and the company announced it will redeem any notes not purchased during the tender offer by September 30, 2019. This indicates a move to retire or refinance this older debt.

How do the new notes rank in the company's capital structure?

The 4.875% Notes due 2029 are senior unsecured obligations of Flex Ltd. This means they rank equally with all of the company's other existing and future senior and unsecured indebtedness. They are subordinate to any secured debt the company may have.

FLEX 8-K: Material Agreements

Summary

Flex Ltd. (FLEX) filed an 8-K on June 6, 2019, to report the completion of its offering of $450 million aggregate principal amount of 4.875% Notes due 2029. These notes were issued under a new Indenture and offer investors a fixed coupon with a maturity of 10 years. The company can redeem the notes at its option, and holders can request repurchase upon a change of control event, providing certain investor protections. This debt issuance is a significant financing event for Flex Ltd. In addition to the new debt offering, the filing also details the expiration and results of Flex's previously announced cash tender offer for its outstanding 4.625% Notes due 2020. The company announced its intention to redeem any remaining 2020 Notes not purchased in the tender offer, indicating a proactive approach to managing its debt profile by refinancing or retiring older, higher-interest debt with potentially newer, more favorable terms or simply to reduce outstanding obligations.

Key Highlights

1Completion of $450 million offering of 4.875% Notes due 2029.
2New notes mature on June 15, 2029, with semi-annual interest payments.
3Company has the option to redeem notes early; holders can demand repurchase upon a change of control.
4Notes are senior unsecured obligations, ranking equally with existing senior unsecured debt.
5Details the underwriting agreement with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., and BNP Paribas Securities Corp.
6Announced pricing and results of a cash tender offer for outstanding 4.625% Notes due 2020.
7Plans to redeem any 2020 Notes not purchased in the tender offer by September 30, 2019.

FLEX LTD. 8-K Report, Material Agreement (Jun 6, 2019)

Summary

Key Highlights

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