Super Micro Computer Announces Entry Into New Revolving Credit Facility
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senior revolving credit facilityfinancial
A senior revolving credit facility is a bank line of credit that a company can draw, repay and draw again as needed, similar to a business credit card but typically much larger and with scheduled checks. “Senior” means lenders using this line are first in line to get repaid if the company faces trouble, so the loan often has lower interest and stricter rules. Investors watch it because it provides short-term cash flexibility, affects interest costs and borrowing capacity, and signals how easily a company can cover operations or weather downturns.
revolving credit facilityfinancial
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
letters of creditfinancial
A letter of credit is a promise from a bank to pay a seller if the buyer fails to do so, commonly used in trade and large contracts to ensure payment. Think of it as a bank standing in for the buyer, like a certified check or payment insurance that reduces the risk of nonpayment. For investors, letters of credit matter because they affect a company’s cash flow, borrowing needs and contingent liabilities, and signal how much credit support a business requires to secure deals.
events of defaultfinancial
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
Form 8-Kregulatory
A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.
SAN JOSE, Calif.--(BUSINESS WIRE)--
Supermicro, Inc (Nasdaq: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced it has entered into a definitive credit agreement providing for a senior revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders.
The revolving credit facility provides for aggregate commitments of $2.0 billion and has a maturity date of 12/29/2030. Borrowings under the facility may be used for working capital, letters of credit, and other general corporate purposes. The obligations under the credit agreement are secured and subject to customary representations, warranties, affirmative and negative covenants, and events of default.
“The establishment of this revolving credit facility provides Supermicro with additional financial flexibility to support our operations and growth initiatives,” said Charles Liang, Founder, President and CEO of Supermicro.
The foregoing description of the credit agreement is qualified in its entirety by reference to the full credit agreement, which is filed as an exhibit to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission.
About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).
Supermicro, Server Building Block Solution, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
