Jabil adds $500 million term loan and extends credit agreement

By Wendy Van Sickle

Columbus, Ohio, July 10 – Jabil Circuit, Inc. entered into an amended and restated $2 billion senior unsecured five year credit agreement Monday that added $500 million in term loan availability, according to an 8-K filed with the Securities and Exchange Commission.

The amended and restated agreement adds a $500 million five-year delayed draw term loan facility to the company’s credit agreement previously amended on July 25, 2014. Under the term loan facility, two term loans are available to be drawn until Sept. 30.

As before the amendment, there is also a $1.5 billion revolving credit facility, which could be expanded to $2 billion.

Interest is based on the company’s debt rating. As before, the revolver bears interest from Libor plus 100 basis points to Libor plus 165 bps with initial interest at Libor plus 117.5 bps. At closing, $790 million was drawn from the revolver.

The term loan has a spread of Libor plus 112.5 bps to Libor plus 200 bps. No draws have been made from the term loan facility, but its rate would be at Libor plus 137.5 bps, according to the filing.

There is also a facility fee based on revolving credit commitments of the lenders, a letter of credit fee based on the amount of outstanding letters of credit and a ticking fee based on undrawn term loan commitments until the earlier of Sept. 30 or the date of the second term loan draw.

Both facilities mature in about five years, but the revolver has two one-year extension options.

Prior to the amendment and restatement, the credit agreement had been set to mature on July 25.

Citibank, NA served as administrative agent, JPMorgan Chase Bank, NA and Bank of America, NA as co-syndication agents, and BNP Paribas, Mizuho Bank, Ltd. and Bank of Nova Scotia as documentation agents.

Jabil is a St. Petersburg, Fla.-based electronic product solutions company.

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