Summary
Flex Ltd. (FLEX) filed an 8-K on May 12, 2020, to report the completion of a significant debt offering. The company successfully issued $750 million in aggregate principal amount of notes, comprising $425 million of 3.750% Notes due 2026 and $325 million of 4.875% Notes due 2030. This offering was conducted under the company's existing shelf registration statement and was facilitated by an underwriting agreement with BofA Securities, Inc., Citigroup Global Markets Inc., and J.P. Morgan Securities LLC. The issuance of these senior unsecured notes provides Flex Ltd. with additional capital, the specific use of which is not detailed in this filing but is typical for supporting general corporate purposes or refinancing existing debt. Investors should note the specific maturity dates and interest rates associated with each series of notes, as well as the provisions for optional redemption by the company and mandatory repurchase upon a change of control event. The indenture governing the notes includes customary covenants and events of default.
Key Highlights
- 1Completion of a $750 million debt offering consisting of two tranches: $425 million of 3.750% Notes due 2026 and $325 million of 4.875% Notes due 2030.
- 2The notes are senior unsecured obligations of Flex Ltd., ranking equally with existing and future senior unsecured indebtedness.
- 3The offering was registered under the company's Form S-3 shelf registration statement.
- 4Interest payments for the 2026 Notes are semi-annual (Feb 1 & Aug 1), beginning Aug 1, 2020, with maturity on Feb 1, 2026.
- 5Interest payments for the 2030 Notes are semi-annual (May 12 & Nov 12), beginning Nov 12, 2020, with maturity on May 12, 2030.
- 6The company retains the option to redeem the notes prior to maturity.
- 7Holders of the notes have the right to require repurchase upon a change of control event, subject to certain conditions.