Summary
Flex Ltd. (FLEX) announced on November 16, 2022, its intention to redeem its entire outstanding aggregate principal amount of $500,000,000 of its 5.000% Notes due 2023. This redemption is scheduled to occur on December 20, 2022, and is being executed in accordance with the terms of the governing Indenture. The company is utilizing this action as part of its ongoing financial management and capital structure optimization. Investors should note that the redemption price will be determined based on the greater of 100% of the principal amount or a calculated present value of future payments, adjusted by a discount rate derived from the applicable Treasury Rate plus 50 basis points. This includes accrued and unpaid interest up to the redemption date. This move signals Flex's proactive approach to managing its debt obligations and capital costs.
Key Highlights
- 1Flex Ltd. (FLEX) is redeeming all $500 million of its 5.000% Notes due 2023.
- 2The redemption date is set for December 20, 2022.
- 3This action is being taken in accordance with the terms of the Indenture governing the notes.
- 4The redemption price will be the greater of 100% of the principal amount or a present value calculation.
- 5The present value calculation involves a discount rate of the applicable Treasury Rate plus 50 basis points.
- 6Accrued and unpaid interest up to the redemption date will also be paid.
- 7This represents a significant debt management action by the company.