Cognizant Secures New $2.4 Billion Unsecured Credit Facility

Overview of Agreement

On October 5, 2026, Cognizant Technology Solutions Corporation (along with its subsidiary, Cognizant Worldwide Limited) entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders.

The agreement establishes $2.4 billion in aggregate unsecured credit facilities:

• $550 Million Term Loan Facility: Used primarily to refinance and replace the company's existing term loan facility.
• $1.85 Billion Revolving Credit Facility: Approximately $1.0 billion was drawn at closing to refinance existing revolving borrowings; the remainder provides ongoing liquidity for general corporate purposes.

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Key Terms & Structure

• Maturity: Both facilities mature on October 3, 2031 (5-year tenor).
• Amortization: No principal repayments required on the Term Loan in Year 1. Thereafter, required quarterly installments are $6.875 million, with the remaining balance due at maturity.
• Pricing: Borrowings bear interest at Term Benchmark or ABR, plus an applicable margin based on Cognizant's credit ratings or leverage ratio. Initial margins are 0.875% for Term Benchmark/RFR loans and 0.00% for ABR loans.
• Accordion Feature: Borrowers may request an increase in facilities by up to $1.2 billion plus voluntary prepayments, subject to customary conditions.
• Financial Covenants: Maximum Leverage Ratio of 3.50:1.00, stepping up to 4.00:1.00 for up to four quarters following certain qualifying acquisitions.

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Market & Financial Impact

This refinancing successfully extends Cognizant's debt maturity runway out to late 2031 while maintaining favorable, investment-grade pricing tiers and flexible accordion capacity for future strategic investments.