Plexus Corp. (NASDAQ: PLXS) renews $500M revolver with expansion option
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Plexus Corp. entered into a Second Amended and Restated Credit Agreement on June 5, 2026, establishing a revolving credit facility with a maximum commitment of $500 million, maturing on June 5, 2031. The facility may, at the Company’s election and subject to conditions, be increased by $250 million to $750 million.
Borrowings bear interest at the Company’s option using an alternate base rate, Term SOFR, EURIBOR or Daily Simple SONIA, plus a margin based on its consolidated leverage metrics. Plexus will also pay a fee of between 10 and 25 basis points on daily unused commitments, tied to its consolidated total debt-to-EBITDA ratio.
The agreement includes financial covenants requiring an interest coverage ratio of at least 3.00 to 1.00 and a leverage ratio not greater than 3.50 to 1.00, with the ability to temporarily increase the leverage limit to 4.25 to 1.00 in connection with certain material acquisitions.
Positive
- None.
Negative
- None.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revolving credit commitment: $500 million
Accordion feature: $250 million
Facility maturity: June 5, 2031
+5 more
8 metrics
Revolving credit commitment
$500 million
Maximum commitment under Second Amended and Restated Credit Agreement
Accordion feature
$250 million
Potential increase, raising facility to $750 million at company election
Facility maturity
June 5, 2031
Maturity date of Second Amended and Restated Credit Agreement
Unused commitment fee
10–25 basis points
Fee on daily unused commitments based on debt-to-EBITDA ratio
Minimum interest coverage
3.00 to 1.00
Consolidated EBITDA to cash consolidated interest expense covenant
Maximum leverage ratio
3.50 to 1.00
Consolidated total debt to consolidated EBITDA covenant
Temporary leverage limit
4.25 to 1.00
Permitted in connection with certain material acquisitions
Unrestricted cash cap
$150 million
Maximum cash netted from debt in leverage calculations
Key Terms
Second Amended and Restated Credit Agreement, revolving credit facility, Term SOFR, EURIBOR, +2 more
6 terms
Second Amended and Restated Credit Agreement financial
"entered into a Second Amended and Restated Credit Agreement (the "Second Amended and Restated Credit Agreement")"
A second amended and restated credit agreement is a company’s loan contract that has been changed twice and rewritten into a single, updated document so all the terms are clear in one place. Investors care because it alters the company’s debt rules — such as interest rates, repayment schedule, and covenants — which affects cash flow, default risk, and the ability to invest or pay dividends; think of it like refinancing and reorganizing a mortgage that changes monthly payments and rules.
revolving credit facility financial
"comprised of a revolving credit facility under which the maximum commitment is $500 million"
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.
Term SOFR financial
"bear interest, at the Company's option, at a rate equal to an alternate base rate, Term SOFR, EURIBOR, or Daily Simple SONIA"
Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.
EURIBOR financial
"at a rate equal to an alternate base rate, Term SOFR, EURIBOR, or Daily Simple SONIA"
Euribor is the benchmark interest rate at which banks in the eurozone lend short-term money to one another and is published for several maturities (overnight to one year). Investors watch it because it forms the baseline for many loans, mortgages, bonds and derivatives—like the temperature reading that helps predict how hot borrowing costs and returns will be across the market.
Daily Simple SONIA financial
"Term SOFR, EURIBOR, or Daily Simple SONIA, plus, in each case, an applicable interest rate margin"
Daily simple SONIA is a widely used benchmark interest rate that reflects the actual overnight cost of borrowing British pounds, expressed as a straightforward daily rate without compounding. Investors use it to calculate interest payments, price loans, bonds and derivatives in a way similar to using a daily electricity meter reading to set your bill; small day-to-day changes can alter cash flows, valuations and hedging costs for financial contracts tied to it.
leverage ratio financial
"a leverage ratio consisting of the Company's consolidated total debt to consolidated EBITDA to be greater than 3.50 to 1.00"
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
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 5, 2026
____________________________________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________________________________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Telephone Number (920 ) 969-6000
(Registrant’s telephone number, including Area Code)
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 (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
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 5, 2026, Plexus Corp. (the "Company") entered into a Second Amended and Restated Credit Agreement (the "Second Amended and Restated Credit Agreement") by and among the Company, certain of its subsidiaries from time to time party thereto as borrowers (together with the Company, collectively, the “Borrowers”), the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”), which replaces in its entirety the Amended and Restated Credit Agreement, dated June 9, 2022, by and among the Company, certain of its subsidiaries party thereto as borrowers, the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent.
The Second Amended and Restated Credit Agreement has a maturity date of June 5, 2031. The Second Amended and Restated Credit Agreement is comprised of a revolving credit facility under which the maximum commitment is $500 million and which, subject to the conditions set forth therein, may, at the election of the Company, be increased by $250 million to $750 million. Borrowings under the Second Amended and Restated Credit Agreement bear interest, at the Company's option, at a rate equal to an alternate base rate, Term SOFR, EURIBOR, or Daily Simple SONIA, plus, in each case, an applicable interest rate margin based on the ratio of the Company's then current consolidated total indebtedness (minus certain unrestricted cash and cash equivalents in an amount not to exceed $150 million) to consolidated EBITDA. The Company will also pay a fee on the daily unused commitments under the Second Amended and Restated Credit Agreement, based on the ratio of the Company's then current consolidated total debt (minus certain unrestricted cash and cash equivalents in an amount not to exceed $150 million) to consolidated EBITDA, of between 10 and 25 basis points.
The Second Amended and Restated Credit Agreement contains customary covenants and events of default including financial covenants requiring, in each case as of the last day of any period of four consecutive fiscal quarters of the Company, the Company not to permit (a) an interest coverage ratio consisting of the Company's consolidated EBITDA to cash consolidated interest expense to be less than 3.00 to 1.00 and (b) a leverage ratio consisting of the Company's consolidated total debt to consolidated EBITDA to be greater than 3.50 to 1.00, subject to the Company's rights to temporarily increase the leverage ratio to 4.25 to 1.00 in connection with certain material acquisitions.
The foregoing description of the Second Amended and Restated Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Second Amended and Restated Credit Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Incorporated herein by reference to Item 1.01 above.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Description | |||||||
| 10.1 | Second Amended and Restated Credit Agreement, dated June 5, 2026, by and among Plexus Corp., certain of its subsidiaries from time to time party thereto as borrowers, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent. | |||||||
| 104 | Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document) | |||||||
* * * * *
SIGNATURES
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.
| Date: June 8, 2026 | PLEXUS CORP. | |||||||
| (Registrant) | ||||||||
By: /s/ David W. Abuhl | ||||||||
| David W. Abuhl | ||||||||
| Senior Vice President and Chief Financial Officer | ||||||||
FAQ
What new credit facility did Plexus Corp. (PLXS) enter into?
Plexus Corp. entered into a Second Amended and Restated Credit Agreement providing a revolving credit facility. The maximum commitment is $500 million, with an option to increase by $250 million. The facility replaces a prior 2022 agreement and extends the company’s committed bank financing.
What is the maturity date of Plexus Corp. (PLXS) new credit agreement?
The new Plexus credit agreement matures on June 5, 2031. This long-dated maturity provides several years of committed revolving capacity, giving the company extended access to bank financing for working capital, general corporate purposes, or other needs within the agreement’s terms and covenants.
How large can Plexus Corp. (PLXS) revolving credit facility become?
The revolving credit facility starts at a $500 million maximum commitment and may be increased to $750 million. The additional $250 million is available at the company’s election, subject to conditions in the agreement, potentially expanding liquidity available from participating lenders.
How is interest determined under Plexus Corp. (PLXS) new credit facility?
Borrowings bear interest at rates tied to reference benchmarks plus a margin. Plexus can choose an alternate base rate, Term SOFR, EURIBOR, or Daily Simple SONIA, with an additional interest margin set according to the company’s consolidated total debt-to-EBITDA ratio under the agreement.
What financial covenants apply to Plexus Corp. (PLXS) under the new credit agreement?
The agreement requires minimum interest coverage and maximum leverage ratios. Plexus must keep consolidated EBITDA to cash consolidated interest expense at least 3.00 to 1.00 and consolidated total debt to consolidated EBITDA no greater than 3.50 to 1.00, with a temporary 4.25 to 1.00 option for certain acquisitions.
Does Plexus Corp. (PLXS) pay fees on unused portions of the facility?
Yes, Plexus pays a fee on daily unused commitments under the facility. The unused commitment fee ranges between 10 and 25 basis points, with the exact level based on the company’s consolidated total debt-to-EBITDA ratio, as defined in the credit agreement’s terms.