01—Abstract
Summary
Summary of the 8-K filed November 17, 2022. Cited figures are marked; the original filing is the authoritative source.
Flex Ltd. (FLEX) announced on November 16, 2022, its intention to redeem its entire outstanding aggregate principal amount of $500,000,000a 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%b 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.
02—Key points
Key Highlights
- Flex Ltd. (FLEX) is redeeming all $500 million of its 5.000% Notes due 2023.
- The redemption date is set for December 20, 2022.
- This action is being taken in accordance with the terms of the Indenture governing the notes.
- The redemption price will be the greater of 100% of the principal amount or a present value calculation.
- The present value calculation involves a discount rate of the applicable Treasury Rate plus 50 basis points.
- Accrued and unpaid interest up to the redemption date will also be paid.
- This represents a significant debt management action by the company.
03—Questions
Frequently Asked Questions
Why is Flex Ltd. redeeming these notes?
Flex Ltd. is redeeming these notes as part of its ongoing financial management strategy. This could be to reduce interest expense, refinance at potentially lower rates, or optimize its capital structure.
What is the total amount being redeemed?
The company is redeeming the full aggregate principal amount of $500,000,000 of its 5.000% Notes due 2023.
When will bondholders receive their redemption payment?
Bondholders will receive their redemption payment on or around the Redemption Date, which is December 20, 2022.
How is the redemption price calculated?
The redemption price is the greater of (i) 100% of the principal amount of the notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest, discounted at the applicable Treasury Rate plus 50 basis points, plus any accrued and unpaid interest up to the redemption date.
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