Flex Ltd. Secures $3.3B Senior Term Loan Credit Facility to Fund EPC Power Corp. Acquisition

Executive Summary

On September 29, 2026, Flex Ltd. entered into a Credit Agreement establishing an aggregate $3.3 billion senior unsecured term loan credit facility. Citibank, N.A. serves as administrative agent, alongside joint lead arrangers including BofA Securities, BBVA, BNP Paribas, DBS Bank, JPMorgan Chase, PNC Bank, TD Bank, Truist Securities, and U.S. Bank.

Key Terms & Structure

• Facility Size: $3.3 billion aggregate commitment.
• Drawdown: Undrawn at closing; available in a single advance during the specified availability period.
• Maturity: 364 days following the initial funding date.
• Interest Rates: Floating rate based on Term SOFR or Base Rate plus an applicable margin tied to Flex's senior unsecured long-term debt ratings.
• Financial Covenants:
  • Debt-to-EBITDA ratio must not exceed 4.50:1.00 as of the end of any fiscal quarter.
  • Interest Coverage Ratio must remain at or above 3.00:1.00.
• Guarantees: Unsecured and not initially guaranteed by subsidiaries, though subsidiary guarantors may be designated in the future.

Strategic Purpose & Bridge Replacement

Proceeds from the term loan facility will be utilized, alongside cash on hand and other borrowings, to finance the cash consideration and related transaction expenses for Flex's acquisition of EPC Power Corp. (originally disclosed September 4, 2026).

Execution of this credit agreement automatically and permanently reduced, on a dollar-for-dollar basis, the commitments under Flex's $4.4 billion senior unsecured 364-day bridge facility established on September 3, 2026.