First Solar (NASDAQ: FSLR) secures $1.5B revolving credit line

Rhea-AI Filing Summary

First Solar, Inc. entered into a new senior unsecured five-year revolving credit facility totaling $1.5 billion, including a $450 million sub-limit for letters of credit. The company may increase commitments by up to an additional $1 billion, subject to lender commitments and other conditions.

The facility, led by JPMorgan Chase Bank as administrative agent, can be used for working capital and general corporate purposes and allows two optional one-year extensions. Pricing is tied to either First Solar’s net leverage ratio or, after an investment grade trigger, its public debt ratings, with specified interest and commitment fee ranges.

Financial covenants require a maximum net leverage ratio of 3.50 to 1.00 (with a potential step-up for material acquisitions) and a minimum interest coverage ratio of 3.00 to 1.00. Concurrently, First Solar terminated its prior senior secured revolving credit agreement and had the related collateral security arrangements released.

Insights

Credit & capital structure analyst

First Solar replaces a secured revolver with a larger unsecured facility.

First Solar has arranged a senior unsecured five-year revolving credit facility of $1.5 billion, with a $450 million letter-of-credit sub-limit and an option to add up to $1 billion more, subject to additional commitments and conditions. The facility supports working capital and general corporate needs.

Pricing flexes with either the company’s net leverage ratio or, after an investment grade trigger, its public debt rating, aligning borrowing costs with its credit profile. The agreement also imposes financial covenants, including a maximum net leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00, along with standard negative covenants on additional debt, liens, M&A, and shareholder distributions.

At the same time, the prior senior secured revolver was voluntarily terminated and its collateral released, shifting First Solar’s liquidity backstop from secured to unsecured debt. Subsequent filings may provide detail on actual borrowings and any future exercise of the accordion feature or extension options under this facility.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

February 13, 2026

Date of Report (Date of earliest event reported)

FIRST SOLAR, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-33156

20-4623678

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

4300 E Camelback Road, Suite 220

Phoenix, Arizona 85018

(Address of principal executive offices, including zip code)

(602) 414-9300

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, $0.001 par value

FSLR

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01.    Entry into a Material Definitive Agreement

On February 13, 2026, First Solar, Inc. (the “Company”) entered into a Revolving Credit and Guaranty Agreement (the “Credit Agreement”), among the Company, the guarantors from time to time party thereto, the several banks and other financial institutions or entities from time to time parties thereto (the “Lenders”), and JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”). The Credit Agreement provides the Company with a senior unsecured five-year revolving credit facility (the “Credit Facility”) in an aggregate principal amount of $1,500,000,000, with a sub-limit of $450,000,000 available for the issuance of letters of credit. Borrowings under the Credit Facility are available for working capital and other general corporate purposes. Subject to receipt of commitments from one or more debt financing sources and certain other conditions, the Company has the right to increase the aggregate commitments under the Credit Facility by an additional $1,000,000,000. The Company may request up to two one-year extensions of the Credit Facility.

Prior to the Investment Grade Ratings Trigger Date (as defined in the Credit Agreement), borrowings under the Credit Agreement bear interest at a rate per annum equal to, at the Company’s option, (i) the Term SOFR Rate (as defined in the Credit Agreement) plus a margin of 1.000% to 1.500% based on the Company’s Net Leverage Ratio (as defined in the Credit Agreement) or (ii) the Alternate Base Rate (as defined in the Credit Agreement) plus a margin of 0.000% to 0.500% based on the Company’s Net Leverage Ratio. If the Investment Grade Ratings Trigger Date occurs, then on and after such date, if the Company elects to switch to a ratings-based pricing system, borrowings under the Credit Agreement will bear interest at a rate per annum equal to, at the Company’s option, (i) the Term SOFR Rate plus a margin of 1.000% to 1.750% based on the Company’s Public Debt Rating (as defined in the Credit Agreement) or (ii) the Alternate Base Rate plus a margin of 0.000% to 0.750% based on the Company’s Public Debt Rating. In addition to paying interest on outstanding principal under the Credit Agreement, the Company is required to pay a commitment fee to the Lenders in respect of the daily amount of the unutilized commitments thereunder. Prior to the Investment Grade Ratings Trigger Date, the commitment fee rate ranges from 0.100% to 0.200% per annum based on the Company’s Net Leverage Ratio. If the Investment Grade Ratings Trigger Date occurs, then on and after such date, if the Company elects to switch to a ratings-based pricing system, the commitment fee rate will range from 0.100% to 0.225% based on the Company’s Public Debt Rating. The Credit Agreement also requires the Company to pay (i) letter of credit participation fees equal to the applicable margin for Term SOFR loans on the face amount of each letter of credit, (ii) letter of credit fronting fees in an amount to be agreed by the Company and such issuing lender, and (iii) other customary letter of credit fees.

The Company may voluntarily repay outstanding loans under the Credit Agreement at any time without premium or penalty, subject to customary “breakage” costs with respect to Term SOFR loans.

The Credit Agreement contains negative covenants that, among other things, restrict, subject to certain exceptions, the ability of (i) the Company’s subsidiaries that do not guarantee the Credit Agreement to incur additional indebtedness and (ii) the Company and its subsidiaries to: (a) incur additional secured indebtedness, (b) create liens, (c) engage in mergers or consolidations, (d) make investments (including acquisitions), and (e) pay dividends, repurchase shares, and make other distributions to shareholders. In addition, the Credit Agreement includes financial covenants requiring the Company to (i) not exceed a Net Leverage Ratio of 3.50 to 1.00 (subject to increase in connection with the consummation of a Material Acquisition (as defined in the Credit Agreement)) and (ii) maintain an Interest Coverage Ratio (as defined in the Credit Agreement) of at least 3.00 to 1.00. The Credit Agreement also contains certain customary representations and warranties, affirmative covenants, and events of default for comparable credit facilities.

The foregoing summary of the Credit Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Credit Agreement, which is filed as Exhibit 10.1 hereto and incorporated into this report by reference.

Item 1.02.    Termination of a Material Agreement

On February 13, 2026, substantially concurrently with the Company’s entry into the Credit Agreement, the Company voluntarily terminated its existing senior secured revolving credit agreement (the “Existing Credit Agreement”), dated as of June 30, 2023 and as amended from time to time, among the Company, the guarantors from time to time party thereto, the several banks and other financial institutions or entities from time to time parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent. In connection with the termination of the Existing Credit Agreement, the collateral security arrangements that secured the Company’s obligations under the Existing Credit Agreement were released.

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Item 2.03.    Creation of Direct Financial Obligation or an Obligation with an Off-Balance Sheet Arrangement of a Registrant

The information set forth in Item 1.01 is hereby incorporated by reference into this Item 2.03.

Item 9.01.    Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number						Description
10.1						Credit and Guaranty Agreement, dated as of February 13, 2026, among First Solar, Inc., the guarantors from time to time party thereto, the several banks and other financial institutions or entities from time to time parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			FIRST SOLAR, INC.
Date: February 19, 2026			By:						/s/ JASON DYMBORT
			Name:						Jason Dymbort
			Title:						General Counsel & Secretary

4

FAQ

What new credit facility did First Solar (FSLR) enter into?

First Solar entered a senior unsecured five-year revolving credit facility totaling $1.5 billion. It includes a $450 million sub-limit for letters of credit and supports working capital and other general corporate purposes, giving the company flexible access to bank funding.

Can First Solar (FSLR) increase the size of its new credit facility?

Yes. First Solar can increase aggregate commitments under the new credit facility by up to an additional $1 billion. This increase is subject to receiving commitments from one or more debt financing sources and satisfying certain other conditions specified in the Credit Agreement.

What are the key financial covenants in First Solar’s (FSLR) Credit Agreement?

The Credit Agreement requires First Solar to keep its Net Leverage Ratio at or below 3.50 to 1.00 and maintain an Interest Coverage Ratio of at least 3.00 to 1.00. These covenants help ensure the company maintains a conservative leverage and interest coverage profile.

How is interest determined on First Solar’s (FSLR) new revolving credit facility?

Interest is based on either the Term SOFR Rate plus a margin or the Alternate Base Rate plus a margin. The margin ranges depend on First Solar’s Net Leverage Ratio initially and can switch to a ratings-based grid tied to its Public Debt Rating after an investment grade trigger.

What happened to First Solar’s previous senior secured revolving credit agreement?

On entering the new unsecured Credit Agreement, First Solar voluntarily terminated its existing senior secured revolving credit agreement dated June 30, 2023. In connection with that termination, the collateral security arrangements securing obligations under the prior facility were released, removing associated liens.

What fees does First Solar (FSLR) pay under the new Credit Agreement?

Beyond interest, First Solar pays a commitment fee on unused commitments, ranging from 0.100% to 0.200% per year initially. It also pays letter-of-credit participation fees at the Term SOFR margin, letter-of-credit fronting fees agreed with issuing lenders, and other customary letter-of-credit charges.

Filing Exhibits & Attachments

5 documents

Other Documents

• EX-101 EXHIBIT 10.1 961.4 KB
• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.1 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT 14.1 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 24.6 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 14.7 KB