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Teradata (TDC) secures new $400 million revolver, repays $500 million term loan

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Teradata Corporation entered into a new five-year unsecured revolving credit facility of up to $400 million with Bank of America and a syndicate of lenders. The facility includes a $50 million standby letter of credit sublimit and a $50 million swingline loan sublimit, and Teradata can request up to an additional $200 million in commitments.

Borrowings bear interest at a floating rate based on a base rate or a secured overnight financing rate, plus a margin that varies with Teradata’s leverage ratio. All amounts are due on June 24, 2031, with options to extend twice for one year each. The new agreement replaces a prior facility that included a $400 million revolver and a $500 million term loan; the outstanding term loan was repaid in full and the prior agreement was terminated.

Positive

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Negative

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Insights

Teradata refinances its bank facility, keeping liquidity stable while removing a term loan.

Teradata entered a new unsecured revolving credit facility of up to $400 million, replacing its prior bank agreement. Key terms include multicurrency borrowing options, a $50 million letter of credit sublimit, a $50 million swingline sublimit, and variable pricing tied to a leverage ratio.

The prior agreement’s $500 million term loan was repaid in full and the facility terminated, simplifying the capital structure toward a revolver-only setup under this arrangement. All borrowings now mature on June 24, 2031, with potential one-year extensions, so future filings will show how much of this capacity Teradata actually uses over time.

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 1.02 Termination of a Material Definitive Agreement Business
A significant contract was terminated, which may affect business operations or revenue.
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.
Revolving credit facility size $400 million Aggregate principal amount under new unsecured facility
Standby letters of credit sublimit $50 million Sublimit within the new revolving facility
Swingline loan sublimit $50 million Sublimit for swingline loans under facility
Optional facility increase $200 million Additional commitments Teradata may request
Facility maturity date June 24, 2031 Final maturity of all outstanding amounts
Prior term loan commitment $500 million Term loan under 2022 agreement, repaid in full
revolving credit facility financial
"The Credit Agreement provides for a five-year unsecured revolving credit facility in an aggregate principal amount of up to $400 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.
swingline loans financial
"including a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans"
A swingline loan is a very short-term, on-demand loan that sits inside a larger credit facility to cover immediate cash needs like payroll, small bills, or last-minute payments. Think of it as an emergency overdraft from a lender: it’s quick to draw, repaid fast, and usually carries faster fees, so investors watch it as a signal of a company’s liquidity pressure and potential cost or covenant stress.
secured overnight financing rate financial
"a floating rate based upon, at Teradata’s option, a negotiated base rate or a rate generally based on a secured overnight financing rate"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
leverage ratio financial
"the applicable margin ranges from 1.000% to 1.500%, in each case, based on Teradata’s leverage ratio"
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.
affirmative and negative covenants financial
"default provisions, and affirmative and negative covenants including, among others, covenants regarding the maintenance of a leverage ratio"
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Understanding 8-K Material Events →
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 24, 2026

TERADATA CORPORATION
(Exact name of registrant as specified in its charter)

Commission File Number 001-33458
 
Delaware
  
75-3236470
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification No.)
 
17095 Via Del Campo
San Diego, California 92127
(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (866) 548-8348

N/A
(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 (see General Instruction A.2 below):
 
☐
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
Name of each exchange on which registered
Common Stock, $0.01 par value
TDC
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 24, 2026, Teradata Corporation (“Teradata”) entered into a Credit Agreement with Bank of America, N.A., as Administrative Agent and the lenders party thereto (the “Credit Agreement”).

The Credit Agreement provides for a five-year unsecured revolving credit facility in an aggregate principal amount of up to $400 million, including a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans (the “Facility”). Teradata may request an increase in the Facility in the aggregate principal amount of up to $200 million, to the extent that existing and/or new lenders agree to provide such additional amounts. At its option, Teradata may designate up to $100 million of loans under the Facility to be denominated in British Pounds Sterling, Euros, and Japanese Yen, subject to the terms and conditions set forth in the Credit Agreement.

The outstanding principal amount under the Facility bears interest at a floating rate based upon, at Teradata’s option, a negotiated base rate or a rate generally based on a secured overnight financing rate, plus, in each case, the applicable margin. The applicable margin for base rate borrowings ranges from 0.00% to 0.500% and for all other borrowings, including borrowings denominated in foreign currency, the applicable margin ranges from 1.000% to 1.500%, in each case, based on Teradata’s leverage ratio. Interest is payable based on the interest period selected by Teradata, but no less frequently than quarterly in arrears. All outstanding amounts under the Credit Agreement are due and payable on June 24, 2031, which date may be extended for up to two additional one-year periods based on mutual agreement of the parties.

Borrowings under the Credit Agreement are unsecured but are guaranteed by certain of Teradata’s material domestic subsidiaries.  The Credit Agreement contains customary representations and warranties, default provisions, and affirmative and negative covenants including, among others, covenants regarding the maintenance of a leverage ratio, financial reporting, compliance with laws, subsidiary indebtedness, liens, and mergers and other fundamental changes. Most of the covenants are subject to materiality, thresholds and monetary caps, and customary exceptions.

The Credit Agreement replaces Teradata’s prior credit agreement, entered into in 2022, which provided for a revolving credit facility in the maximum principal of $400 million and a term loan commitment in the principal amount of $500 million (the “Prior Agreement”). In connection with the execution of the Credit Agreement, the term loan outstanding under the Prior Agreement was repaid in full.

Teradata has other relationships with the parties to the Credit Agreement where such party, as applicable, in the past received, and may in the future receive, customary compensation and reimbursement of expenses.

The preceding description of the Credit Agreement is not complete and is subject to and qualified in its entirety by reference to the Credit Agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 1.02
Termination of a Material Definitive Agreement.
 
In connection with the execution of the Credit Agreement described above, on June 24, 2026, the Prior Agreement was terminated. The material relationships between Teradata and the parties to the Prior Agreement were the same as described above. The material terms and conditions of the Prior Agreement were substantially similar to the material terms and conditions of the Credit Agreement, except for the removal of sustainability features and the term loan commitment present in the Prior Agreement.

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

The disclosure set forth under Item 1.01 is incorporated herein by reference.

Item 9.01
Financial Statements and Exhibits.

(d)          Exhibits:
 
The following exhibits are attached with this current report on Form 8-K:
 
Exhibit No.
Description
   
10.1
Credit Agreement dated as of June 24, 2026 among Teradata Corporation, the lenders party thereto and Bank of America, N.A., as Administrative Agent.*
   
104
Cover Page Interactive Data File (embedded within the XBRL document).

*Certain schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby agrees to supplementally furnish to the SEC upon request any omitted schedule or similar attachment to the corresponding exhibit.
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 thereunto duly authorized.

 
TERADATA CORPORATION
     
Dated: June 24, 2026
By:
/s/ John Ederer
  
   
Name:  John Ederer
   
Title:    Chief Financial Officer


Source: View Original Filing on SEC EDGAR

FAQ

What new credit facility did Teradata (TDC) enter into on June 24, 2026?

Teradata entered a five-year unsecured revolving credit facility of up to $400 million with Bank of America and other lenders. The agreement provides flexible borrowing capacity, including multicurrency options, to support the company’s general corporate financing needs.

When does Teradata’s new revolving credit facility mature?

All outstanding amounts under Teradata’s new revolving credit facility are due on June 24, 2031. The agreement also allows for up to two additional one-year extensions, subject to mutual agreement between Teradata and the lenders.

Can Teradata increase the size of its new credit facility beyond $400 million?

Yes. Teradata may request an increase of up to $200 million in additional commitments under the facility. Any such increase depends on existing or new lenders agreeing to provide the extra revolving credit capacity on the agreed terms.

What happened to Teradata’s prior term loan under the 2022 credit agreement?

In connection with the new credit agreement, the term loan outstanding under Teradata’s 2022 credit agreement, which had a $500 million commitment, was repaid in full. The prior agreement, including its revolving and term loan features, was then terminated.

Are borrowings under Teradata’s new facility secured or guaranteed?

Borrowings under the new facility are unsecured but are guaranteed by certain of Teradata’s material domestic subsidiaries. The agreement includes customary covenants and default provisions, including maintenance of a leverage ratio and limits on additional indebtedness and liens.

How is interest determined on Teradata’s new revolving credit borrowings?

Interest is based on either a negotiated base rate or a rate tied to a secured overnight financing rate, plus an applicable margin. The margin ranges from 0.00% to 0.500% for base rate loans and 1.000% to 1.500% for other borrowings, depending on Teradata’s leverage ratio.

Filing Exhibits & Attachments

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Agreements & Contracts

Other Documents