Jabil Strengthens Financial Position with Massive $4.2B Credit Agreement

Rhea-AI Filing Summary

Jabil has entered into a new $3.2 billion senior unsecured revolving credit facility on June 18, 2025, with potential increases of up to $1.0 billion. Key features include:

• Five-year maturity with unlimited successive one-year extension options
• Available in multiple currencies including Dollars, Euros, and Yen
• Interest rates based on credit rating: 0.90% to 1.45% above benchmark rate or 0.00% to 0.45% above base rate
• Current interest rates: 1.075% above benchmark rate and 0.075% above base rate

The company simultaneously terminated its existing credit agreement from January 2020 without early termination penalties. The new facility is currently undrawn and involves multiple major financial institutions including Citibank (administrative agent), Bank of America, and JPMorgan Chase as co-syndication agents.

Positive

• Secured new $3.2 billion revolving credit facility with potential $1.0 billion increase option, strengthening liquidity position
• Facility offers multi-currency flexibility (USD, EUR, YEN) with 5-year maturity and extension options
• Favorable interest rates based on credit rating: current spreads of 0.075% above base rate and 1.075% above benchmark rate indicate strong credit standing
• No early termination penalties incurred in transitioning from previous credit agreement

Negative

• None.

Insights

Corporate Finance Specialist

Jabil secured a larger, more flexible $3.2B credit facility with better terms, strengthening its financial position and operational capabilities.

Jabil has replaced its existing credit facilities with a new $3.2 billion revolving credit facility that offers improved financial flexibility. The five-year facility includes potential expansion by an additional $1 billion and allows borrowing in multiple currencies. This arrangement consolidates Jabil's previous facilities under a single agreement while maintaining the same total commitment amount.

The interest rates are tiered based on Jabil's credit rating, currently set at 0.075% above base rate or 1.075% above benchmark rate, reflecting the company's solid credit profile. The facility includes the option for unlimited one-year extensions (subject to lender approval), providing Jabil with long-term liquidity planning capabilities.

This refinancing demonstrates proactive liability management by securing long-term access to capital without increasing overall debt exposure. The multi-currency feature is particularly valuable for Jabil's global operations, allowing more efficient capital deployment across its international manufacturing footprint. The undrawn status at closing preserves Jabil's financial flexibility while maintaining access to substantial liquidity for operational needs, potential acquisitions, or other strategic initiatives.

JABIL INC false 0000898293 0000898293 2025-06-18 2025-06-18

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

Date of Report (Date of earliest event reported): June 18, 2025

Jabil Inc.

(Exact name of registrant as specified in its charter)

Delaware		001-14063		38-1886260
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

10800 Roosevelt Boulevard North, St. Petersburg, Florida 33716

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code (727) 577-9749

(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 per share		JBL		New York Stock Exchange

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 June 18, 2025, Jabil Inc. (the “Company”) entered into a senior unsecured credit agreement (the “Agreement”). The Agreement provides for a five-year revolving credit facility in the initial amount of $3.2 billion (the “Revolving Credit Facility”), which Revolving Credit Facility may, subject to the lenders’ discretion, potentially be increased by up to an aggregate amount of $1.0 billion. The Revolving Credit Facility is available in Dollars, Euros, Yen, or any other currency approved by the administrative agent and the lenders. The Agreement was entered into among the Company; the initial lenders named therein; Citibank, N.A., as administrative agent; Bank of America, N.A. and JPMorgan Chase Bank, N.A., as co-syndication agents; BNP Paribas, Credit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as co-documentation agents; and Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Credit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as joint lead arrangers and joint bookrunners. The Revolving Credit Facility matures five years from the date of closing, subject to unlimited successive one-year extension options (subject to the lenders’ discretion), provided that the tenor of the Revolving Credit Facility shall at no time exceed five years.

Interest and fees on advances under the Revolving Credit Facility are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by S&P Global Ratings, Moody’s Ratings and Fitch Ratings (collectively, the “Rating Agencies”), all as more fully described in the Agreement. Interest is charged at a rate equal to either 0.00% to 0.45% above the base rate or 0.90% to 1.45% above the benchmark rate (the “Applicable Margin”), as applicable, based on the Company’s credit ratings, where the base rate represents the greatest of Citibank, N.A.’s base rate, 0.50% above the federal funds rate, and 1.0% above one-month Term SOFR, but not less than zero, and the benchmark rate represents Term SOFR, EURIBOR, TIBOR or Daily Simple SOFR, as applicable, for the applicable interest period, but not less than zero, each as more fully described in the Agreement. Fees include (i) a facility fee based on the revolving credit commitments of the lenders and (ii) a letter of credit fee based on the amount of outstanding letters of credit. Based on the Company’s current non-credit enhanced long-term senior unsecured debt rating as determined by the Rating Agencies, the current rates of interest for the Revolving Credit Facility are 0.075% above the base rate and 1.075% above the benchmark rate. The Agreement includes various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers.

As of the date of the Agreement, the Revolving Credit Facility was undrawn.

Certain of the lenders under the Revolving Credit Facility and their affiliates have various other relationships with the Company and its subsidiaries involving the provision of financial services, including cash management, loans, letter of credit and bank guarantee facilities, investment banking and trust services. The Company and certain of its subsidiaries have entered into foreign exchange contracts and other derivative arrangements with certain of the lenders and their affiliates. In addition, various agents and lenders under the Revolving Credit Facility held positions as agent and/or lender under the Company’s Existing Credit Agreement (as defined below).

In connection with the Company’s entry into the Agreement, the Company terminated the Company’s credit agreement dated January 22, 2020 (as amended, the “Existing Credit Agreement”), governing the Company’s existing three- and five-year revolving credit facilities which, together, totaled $3.2 billion. The Existing Credit Agreement was entered into among the Company; the initial lenders named therein; Citibank, N.A., as administrative agent; JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-syndication agents; and BNP Paribas, Mizuho Bank, Ltd. MUFG Bank, Ltd. Sumitomo Mitsui Banking Corporation, as documentation agents; and Citibank, N.A., JPMorgan Chase Bank, N.A., BofA Securities, Inc., BNP Paribas Securities Corp., Mizuho Bank, Ltd., MUFG Bank, Ltd. and Sumitomo Mitsui Banking Corporation, as joint lead arrangers and joint bookrunners. The Company did not incur any early termination penalties in connection with such terminations.

Certain of the lenders under the Existing Credit Agreement and their affiliates have various other relationships with the Company and its subsidiaries involving the provision of financial services, including cash management, loans, letter of credit and bank guarantee facilities, investment banking and trust services. The Company and certain of its subsidiaries have entered into foreign exchange contracts and other derivative arrangements with certain of the lenders and their affiliates. In addition, various agents and lenders under the Existing Credit Agreement hold positions as agent and/or lender under the Agreement.

The foregoing descriptions of the Agreement, the Revolving Credit Facility and the Existing Credit Agreement are not complete and are qualified in their entirety by reference to the Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K, the Existing Credit Agreement, which was included as Exhibit 10.1 to our Current Report on Form 8-K filed on January 28, 2020, including the amendments thereto, which were included as Exhibit 10.1 to our Current Reports on Form 8-K filed on May 4, 2021, February 13, 2023 and February 23, 2024, respectively, each of which is incorporated by reference herein.

Item 1.02 Termination of a Material Definitive Agreement.

The information included in Item 1.01 of this Report is incorporated by reference into this Item 1.02.

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

The information included in Item 1.01 of this Report is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
10.1		Credit Agreement dated as of June 18, 2025 among Jabil Inc.; the lenders named therein; Citibank, N.A., as administrative agent; Bank of America, N.A. and JPMorgan Chase Bank, N.A., as co-syndication agents; BNP Paribas, Credit Agricole Corporate and Investment Bank, Miztem uho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as co-documentation agents; and Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Credit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as joint lead arrangers and joint bookrunners
104		Cover Page Interactive Data File (Embedded within the Inline XBRL document).

SIGNATURES

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

				JABIL INC.
				(Registrant)
June 24, 2025				By:		/s/ Susan Wagner-Fleming
						Susan Wagner-Fleming
						Senior Vice President, Securities, M&A and Corporate Secretary

FAQ

What is the size of JBL's new revolving credit facility announced in June 2025?

JBL entered into a new senior unsecured credit agreement providing a five-year revolving credit facility of $3.2 billion, with potential to increase by up to an additional $1.0 billion subject to lenders' discretion.

What are the interest rates for JBL's new credit facility in 2025?

Based on JBL's current credit rating, the interest rates are 0.075% above the base rate and 1.075% above the benchmark rate. The overall range can vary from 0.00% to 0.45% above base rate or 0.90% to 1.45% above benchmark rate depending on the company's credit ratings.

Which banks are the lead arrangers for JBL's 2025 credit facility?

The joint lead arrangers and bookrunners are Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Credit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association.

What happened to JBL's previous credit agreement?

JBL terminated its previous credit agreement dated January 22, 2020 (which had provided $3.2 billion in three- and five-year revolving credit facilities) in connection with entering the new agreement. The company did not incur any early termination penalties.

What currencies can JBL access through its new 2025 credit facility?

The revolving credit facility is available in Dollars, Euros, Yen, or any other currency approved by the administrative agent and the lenders.