01—Abstract
Summary
Summary of the 8-K filed February 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. filed this Form 8-K on February 26, 2024 to report that, on February 23, 2024, it entered into Amendment No. 3 to its senior unsecured credit agreement dated January 22, 2020.
The agreement is among the company, its lenders, and Citibank, N.A. as administrative agent, with several other banks serving as sustainability agents, syndication agents, documentation agents, and joint lead arrangers and bookrunners. The filing states that the amendment, among other things, revised the sustainability-linked adjustments to interest rates on borrowings under both the Three-Year Revolving Credit Facility and the Five-Year Revolving Credit Facility. The amendment also extends the termination dates for the extending lenders' commitments.
The Three-Year Revolving Credit Facility moves from January 22, 2025 to January 22, 2026, and the Five-Year Revolving Credit Facility moves from January 22, 2027 to January 22, 2028. Each is subject to an additional one-year extension at the company's option. The filing states that no other material changes were made to the agreement, which remains in full force and effect.
The filing also notes that certain lenders and their affiliates have other financial service relationships with Jabil and its subsidiaries, including cash management, loans, letter of credit and bank guarantee facilities, investment banking, trust services, and foreign exchange and other derivative arrangements. The 8-K is incorporated under Item 2.03 as well, and the full amendment is filed as Exhibit 10.1.
02—Key points
Key Highlights
- Entered into Amendment No. 3 to the senior unsecured credit agreement on February 23, 2024, with the amendment disclosed in this 8-K filed February 26, 2024.
- Revised sustainability-linked adjustments to interest rates on borrowings under the Three-Year and Five-Year Revolving Credit Facilities.
- Extended the termination date of the Three-Year Revolving Credit Facility for extending lenders from January 22, 2025 to January 22, 2026.
- Extended the termination date of the Five-Year Revolving Credit Facility for extending lenders from January 22, 2027 to January 22, 2028.
- Both facility extensions are subject to an additional one-year extension at the company's option.
- The filing states that no other material changes were made to the original agreement, which remains in full force and effect.
- Lenders and affiliates have other relationships with the company, including cash management, loans, letters of credit, investment banking, and foreign exchange and derivative arrangements.
03—Questions
Frequently Asked Questions
What did Jabil change in its credit agreement?
The amendment revised the sustainability-linked adjustments to interest rates on borrowings under its Three-Year and Five-Year Revolving Credit Facilities and extended the termination dates for extending lenders' commitments.
When do the revolving credit facilities now mature?
For extending lenders, the Three-Year Revolving Credit Facility now terminates on January 22, 2026, down from January 22, 2025 as originally set, and the Five-Year Revolving Credit Facility now terminates on January 22, 2028, up from January 22, 2027. Each may be extended by one additional year at the company's option.
Did the amendment change any other terms of the agreement?
The filing states that, apart from the changes described, no other material changes were made to the agreement, which remains in full force and effect.
Do the lenders have other business relationships with Jabil?
Yes. The filing states that certain lenders and their affiliates provide other financial services to Jabil and its subsidiaries, including cash management, loans, letter of credit and bank guarantee facilities, investment banking, trust services, and foreign exchange and other derivative arrangements.
04—Continue