FLEX · Flex Ltd.

Flex Ltd. entered into a $1.45 billion senior delayed draw term loan credit agreement on April 30, 2026, with Citibank as administrative agent. The facility matures 364 days after the initial funding date and bears floating interest based on Term SOFR or Base Rate plus a margin determined by Flex's debt ratings. The credit agreement includes customary covenants, including a maximum Debt/EBITDA ratio of 4.00x and a minimum Interest Coverage ratio of 3.00x. Proceeds are intended for general corporate purposes, specifically to finance the acquisition of Electrical Power Products, Inc. (EP²), which was completed on May 4, 2026. The acquisition of EP², a provider of engineered-to-order electrical power control and protection systems, expands Flex's Critical Power portfolio and strengthens its presence in utility and power generation markets. The transaction aligns with trends in grid modernization, electrification, data center demand, and U.S. reshoring. Flex's CEO, Revathi Advaithi, highlighted the strategic fit and enhanced capabilities from the acquisition. The credit facility provides Flex with significant liquidity to support this acquisition and other corporate needs.