TD SYNNEX secures $1.75B term loan due in 2029
A change of control is among the credit agreement’s events of default, alongside other customary default provisions.
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Form Type
8-K
Rhea-AI Filing Summary
TD SYNNEX Corporation (SNX) entered into a senior unsecured term loan agreement for a $1.75 billion loan. A portion of the proceeds refinanced and repaid in full its existing $750 million term loan, which was scheduled to mature September 1, 2027; remaining proceeds will be used for general corporate purposes, including acquisitions. The new loan matures November 2, 2029, has no scheduled amortization before maturity, and cannot be reborrowed once repaid or prepaid.
SOFR-based loans bear interest at the applicable SOFR rate plus a margin of 1.00% to 1.625%, based on TD SYNNEX’s Public Debt Rating. At each fiscal quarter-end, consolidated Funded Debt to EBITDA must not exceed 4.00 to 1.00, and EBITDA to Interest Charges must be at least 3.00 to 1.00. After a Qualified Acquisition, TD SYNNEX may elect a 4.50-to-1.00 maximum leverage ratio for the acquisition quarter and four following consecutive quarters, provided it maintained a maximum 4.00-to-1.00 ratio for at least the two consecutive fiscal quarters immediately before that acquisition. The agreement also restricts subsidiary debt incurrence, liens, mergers or consolidations, certain affiliate transactions, and changes in business nature.
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, or exhibit attachments filed with this report.
Key Figures
New term loan principal: $1.75 billion
Existing term loan repaid: $750 million
New term loan maturity: November 2, 2029
+4 more
7 metrics
New term loan principal
$1.75 billion
Aggregate principal amount
Existing term loan repaid
$750 million
Repaid in full; scheduled maturity September 1, 2027
New term loan maturity
November 2, 2029
Maturity date
Applicable Margin
1.00% to 1.625%
Added to the applicable SOFR rate; based on TD SYNNEX’s Public Debt Rating
Maximum Funded Debt to EBITDA ratio
4.00 to 1.00
Quarter-end financial covenant
Minimum EBITDA to Interest Charges ratio
3.00 to 1.00
Quarter-end financial covenant
Qualified Acquisition maximum leverage ratio
4.50 to 1.00
Optional ratio for the acquisition quarter and four following consecutive quarters, subject to the stated prior-quarter condition
Key Terms
senior unsecured term loan, Applicable Margin, Public Debt Rating, Funded Debt, +2 more
6 terms
senior unsecured term loan financial
"provides for the extension of a senior unsecured term loan"
A senior unsecured term loan is a fixed-schedule loan a company takes from lenders that ranks high in repayment order but is not backed by specific collateral. Think of it as a formal IOU that gets paid before shareholders and some other creditors, yet carries more risk than loans secured by assets; because of that, it usually pays a higher interest rate. Investors watch these loans for signals about a company’s cash flow, credit risk and how safely it can service its debts.
Applicable Margin financial
"plus the Applicable Margin"
Applicable margin is the extra percentage added to a base interest rate to calculate the actual interest a borrower pays on a floating-rate loan or credit line. Investors care because it directly affects a company’s borrowing cost—higher margins raise interest expense and reduce profit and cash flow, while lower margins make financing cheaper; think of it as a variable surcharge on a sale price that reflects the lender’s view of risk.
Public Debt Rating financial
"based on TD SYNNEX’s Public Debt Rating"
Funded Debt financial
"ratio of Funded Debt of TD SYNNEX and its subsidiaries"
Funded debt is a company’s long-term borrowings that are scheduled to be repaid over years — for example bonds, long-term loans or debentures — rather than short-term bills. Think of it as a mortgage-style obligation that ties up future cash; investors watch it because high funded debt can increase default risk, limit cash available for growth or dividends, and affect credit ratings and share value.
Qualified Acquisition financial
"upon any Qualified Acquisition"
Interest Charges financial
"ratio of EBITDA to Interest Charges"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much is TD SYNNEX’s new term loan?
TD SYNNEX entered into a senior unsecured term loan for $1.75 billion. A portion of the proceeds repaid its existing $750 million term loan in full; the remaining proceeds will be used for general corporate purposes, including acquisitions.
What interest rate applies to SNX’s new term loan?
SOFR-based loans bear interest at the applicable SOFR rate plus a margin of 1.00% to 1.625%, with the margin determined by TD SYNNEX’s Public Debt Rating.
What financial tests does SNX’s term loan require?
At each fiscal quarter-end, consolidated Funded Debt to EBITDA must be no more than 4.00 to 1.00, and consolidated EBITDA to Interest Charges must be at least 3.00 to 1.00. Following a Qualified Acquisition, TD SYNNEX may elect a 4.50-to-1.00 leverage ceiling for the acquisition quarter and four consecutive quarters after, subject to maintaining a maximum 4.00-to-1.00 ratio for at least the two immediately preceding consecutive fiscal quarters.
What restrictions does the SNX term loan agreement include?
The agreement restricts subsidiary debt incurrence, creation of liens, mergers or consolidations, certain affiliate transactions, and changes in the nature of the business. It also includes customary events of default, including a change of control.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 2, 2026
_________________________________________________
(Exact name of registrant as specified in its charter)
_________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices) | (Zip Code) | |||||||
(727 ) 539-7429
(Registrant’s telephone number, including area code)
(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 obligations 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 | ||||||||||||
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 November 2, 2026, TD SYNNEX Corporation (“TD SYNNEX”) entered into a Term Loan Credit Agreement (the “New Term Loan Credit Agreement”) with the initial lenders party thereto, Bank of America, N.A. (“Bank of America”), as administrative agent for the lenders, and BofA Securities, Inc., as lead arranger and lead bookrunner. The New Term Loan Credit Agreement provides for the extension of a senior unsecured term loan in an aggregate principal amount of $1,750 million (the “New Term Loan”).
A portion of the proceeds of the New Term Loan were used to refinance and repay in full TD SYNNEX’s existing $750 million term loan previously disclosed that would have matured on September 1, 2027. The remainder of the proceeds of the New Term Loan will be used for general corporate purposes of TD SYNNEX and its subsidiaries, including acquisitions. The New Term Loan will mature on November 2, 2029, is not subject to scheduled amortization prior to maturity and, once repaid or prepaid, may not be reborrowed.
Loans borrowed under the New Term Loan Credit Agreement bear interest, in the case of SOFR rate loans, at a per annum rate equal to the applicable SOFR rate, plus the Applicable Margin (as defined in the New Term Loan Credit Agreement), which may range from 1.00% to 1.625%, based on TD SYNNEX’s Public Debt Rating (as defined in the New Term Loan Credit Agreement).
The New Term Loan Credit Agreement contains various loan covenants that restrict the ability of TD SYNNEX and its subsidiaries to take certain actions, including, incurrence of indebtedness (solely with respect to any subsidiary of TD SYNNEX), creation of liens, mergers or consolidations, entering into certain transactions with affiliates or changing the nature of their business, in each case, that are customary for similar facilities for similarly rated borrowers. In addition, the New Term Loan Credit Agreement contains financial covenants which require TD SYNNEX to maintain at the end of any of its fiscal quarters, (i) a ratio of (x) Funded Debt (as defined in the New Term Loan Credit Agreement) of TD SYNNEX and its subsidiaries on a consolidated basis to (y) EBITDA (as defined in the New Term Loan Credit Agreement) of TD SYNNEX and its subsidiaries on a consolidated basis of 4.00 to 1.00, with the option at TD SYNNEX’s election upon any Qualified Acquisition (as defined in the New Term Loan Credit Agreement) to increase the maximum ratio to 4.50 to 1.00 for the fiscal quarter in which such Qualified Acquisition is consummated and the four consecutive fiscal quarters immediately following such fiscal quarter, subject to TD SYNNEX having maintained a maximum ratio of 4.00 to 1.00 for at least two consecutive fiscal quarters immediately preceding such Qualified Acquisition, and (ii) a ratio of (x) EBITDA of TD SYNNEX and its subsidiaries on a consolidated basis to (y) Interest Charges (as defined in the New Term Loan Credit Agreement) of TD SYNNEX and its subsidiaries on a consolidated basis of not less than 3.00 to 1.00. The New Term Loan Credit Agreement also contains various customary events of default, including with respect to a change of control of TD SYNNEX.
The foregoing description of the New Term Loan Credit Agreement is qualified in its entirety by reference to the full text of the New Term Loan Credit Agreement which is attached hereto as Exhibit 10.1 to this Current Report on Form 8-K and is 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. | |||||||||||||
The information set forth under Item 1.01 of this Current Report on Form 8-K with respect to the New Term Loan Credit Agreement and the New Term Loan is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. | |||||||||||||
(d) Exhibits.
| Exhibit No. | Description of Document | |||||||||||||
10.1+ | Credit Agreement, dated as of November 2, 2026, by and among TD SYNNEX Corporation, the lenders party thereto and Bank of America, N.A., as administrative agent. | |||||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||||||||
+Schedules (or similar attachments) and certain information have been omitted pursuant to Items 601(a)(5), 601(a)(6) and/or 601(b)(10)(iv) of Regulation S-K. TD SYNNEX hereby undertakes to furnish supplementally a copy of any omitted schedule or exhibit to such agreement to the U.S. Securities and Exchange Commission upon request; provided, however, that TD SYNNEX may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any schedules or exhibits so furnished.
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.
Date: November 5, 2026 | TD SYNNEX CORPORATION | |||||||
| By: | /s/ David Jordan | |||||||
| David Jordan | ||||||||
| Chief Financial Officer | ||||||||