01—Abstract
Summary
Summary of the 8-K filed October 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Flex Ltd. has entered into a new Credit Agreement for a $3.3 billiona senior term loan credit facility, effective September 29, 2026.
This facility, provided by a syndicate of lenders led by Citibank, N.A., is intended to help finance a portion of the cash consideration for the previously announced acquisition of EPC Power Corp., along with related fees and expenses. While the facility was undrawn at closing, it provides Flex with significant liquidity, maturing 364 days after funding. The Credit Agreement includes customary covenants, such as restrictions on debt incurrence and asset disposals, and requires Flex to maintain specific Debt/EBITDA and Interest Coverage Ratios.
This new credit facility effectively reduces by dollar-for-dollar the commitments under Flex's existing $4.4 billionb 364-day bridge facility. Notably, the new facility is not guaranteed by any Flex subsidiary initially, though subsidiaries can be added as guarantors. The company has also included a cautionary statement regarding forward-looking statements, particularly concerning a planned spin-off of its cloud and power infrastructure business into an independent entity named Axiom Solutions International, Inc. This spin-off is subject to various conditions and potential risks, including regulatory approvals and market reception.
02—Key points
Key Highlights
- Flex Ltd. secured a new $3.3 billion senior term loan credit facility on September 29, 2026.
- The new credit facility is primarily intended to fund the acquisition of EPC Power Corp.
- The facility carries a maturity of 364 days after its funding date.
- Interest rates on the loan are floating, based on Term SOFR or Base Rate plus an applicable margin tied to debt ratings.
- Customary covenants, including Debt/EBITDA and Interest Coverage Ratio requirements, are in place.
- The new facility reduces the availability under Flex's existing $4.4 billion bridge facility.
- The report also mentions a planned spin-off of Flex's cloud and power infrastructure business into a new company, Axiom Solutions International, Inc.
03—Questions
Frequently Asked Questions
What is the primary purpose of the new $3.3 billion credit facility?
The primary purpose of the new $3.3 billion senior term loan credit facility is to finance a portion of the cash consideration for Flex's previously announced acquisition of EPC Power Corp., as well as to cover related fees and expenses.
When does the new credit facility mature?
The Credit Facility will mature 364 days after the date on which it is funded.
What are the key financial covenants Flex must adhere to under the new Credit Agreement?
Flex must maintain a Debt/EBITDA Ratio not to exceed 4.50 to 1.00 and an Interest Coverage Ratio of not less than 3.00 to 1.00, as of the last day of any fiscal quarter.
How does this new credit facility affect Flex's existing debt arrangements?
The effectiveness of the new Credit Agreement automatically and permanently reduced, on a dollar-for-dollar basis, the commitments under Flex's existing $4.4 billion senior unsecured 364-day bridge facility.
Are there any subsidiaries guaranteeing this new debt?
No, the obligations under the Credit Agreement are not guaranteed by any subsidiary of Flex at the time of the agreement. However, Flex has the option to cause any of its subsidiaries to become a guarantor after the closing date.
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