Summary
Flex Ltd. (FLEX) announced on November 30, 2022, that it has entered into an underwriting agreement to sell $400 million in aggregate principal amount of its 6.000% Notes due 2028. The offering is expected to close around December 7, 2022. This action is primarily aimed at refinancing existing debt. The company plans to use the net proceeds from this new note issuance, along with available cash, to fund the redemption of its $500.0 million in 5.000% notes due February 2023. This move signals a proactive approach to managing its debt profile, potentially lowering interest expenses or extending maturity dates. Any remaining proceeds will be allocated for general corporate purposes, including further debt repayment, working capital, capital expenditures, or acquisitions.
Key Highlights
- 1Flex Ltd. is issuing $400 million of new 6.000% Notes due 2028.
- 2The primary purpose of the new issuance is to redeem $500 million of existing 5.000% Notes due February 2023.
- 3This debt refinancing is expected to occur with a closing date around December 7, 2022.
- 4The company is proactively managing its debt maturity profile.
- 5Underwriters include major financial institutions: Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Inc., and U.S. Bancorp Investments, Inc.
- 6Remaining proceeds, if any, will be used for general corporate purposes, including debt reduction, working capital, capital expenditures, and acquisitions.
- 7Certain underwriters or their affiliates may hold the 2023 notes and will benefit from the redemption.