Summary
Flex Ltd. (FLEX) has announced a significant financing event and a major acquisition completion via its Form 8-K filing on May 4, 2026. The company has secured a new senior delayed draw term loan credit facility totaling $1.45 billion, maturing 364 days after the initial funding. This facility, provided by a syndicate of lenders with Citibank, N.A. as administrative agent, will be used for general corporate purposes, critically including the financing of its previously disclosed acquisition of Electrical Power Products, Inc. (EP²). The Credit Agreement introduces customary covenants and events of default, including financial maintenance covenants such as a Debt/EBITDA Ratio not to exceed 4.00x and an Interest Coverage Ratio of at least 3.00x. While the credit facility is not guaranteed by subsidiaries initially, the company retains the option to add subsidiary guarantees. Concurrently, Flex announced the successful completion of its acquisition of EP², as detailed in an accompanying press release.
Key Highlights
- 1Secured a $1.45 billion senior delayed draw term loan credit facility.
- 2The new credit facility matures 364 days after its first funding.
- 3Proceeds are earmarked for general corporate purposes, including the acquisition of Electrical Power Products, Inc. (EP²).
- 4The acquisition of EP² has been officially completed as of May 4, 2026.
- 5The credit agreement includes financial covenants: Debt/EBITDA Ratio <= 4.00x and Interest Coverage Ratio >= 3.00x.
- 6Interest rates are variable, based on Term SOFR or Base Rate plus an applicable margin tied to debt ratings.