Flex Ltd. secures $3.3 billion senior term loan to fund EPC Power acquisition
Flex Ltd. entered into a credit agreement with Citibank and other lenders for a senior term loan of $3.3 billion. The facility matures 364 days after funding and carries a floating rate tied to Term SOFR or a base rate plus a margin. The agreement imposes covenants limiting Debt/EBITDA to 4.50:1 and requiring an Interest Coverage Ratio of at least 3.00:1. Proceeds will be used to finance the cash portion of Flex’s acquisition of EPC Power Corp and to reduce commitments under an existing $4.4 billion bridge facility.
Why it matters
The loan provides Flex with near‑term financing to complete the EPC Power purchase while lowering its outstanding bridge‑facility commitments. The added debt and covenant requirements will affect Flex’s balance‑sheet leverage and liquidity profile.
Key facts
- 1Flex secured a senior term loan credit facility with an aggregate committed amount of $3.3 billion. marketscreener.com
- 2The facility will mature 364 days after the date it is funded. marketscreener.com
- 3Loans bear interest at a floating rate based on either Term SOFR plus a margin or the Base Rate plus a margin. marketscreener.com
- 4The credit agreement requires a Debt/EBITDA ratio not to exceed 4.50:1. marketscreener.com
- 5The credit agreement requires an Interest Coverage Ratio of at least 3.00:1. marketscreener.com
- 6The new facility reduces, on a dollar‑for‑dollar basis, commitments under Flex’s existing $4.4 billion senior unsecured 364‑day bridge facility. marketscreener.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.