Penguin Solutions, Inc. Completes Refinancing of Credit Facilities

Published: 2025-06-26 10:35:34 ET PENG

Published on 06/26/2025 at 10:35

Penguin Solutions, Inc. announced that it has completed a refinancing of its credit facilities via a $400 million Revolving Credit Facility, which includes a $35 million letter of credit subfacility. The transaction refinances and replaces the $300 million Term Loan A Facility due 2027 and the $250 million Revolving Credit Facility due 2027. The Existing Credit Facilities were repaid and terminated in connection with the transaction.

The Credit Facilities closed on June 24, 2025, and the Company borrowed $100 million under the new Revolving Credit Facility. The Company repaid in full the $300 million outstanding under the Existing Credit Facilities with a mix of the $100 million in borrowings under the Credit Facilities and $200 million in available cash, reducing the Company?s funded debt by $200 million. The Credit Facilities mature in 2030.

Interest on the Credit Facilities will be based on a Total Net Leverage grid, with the initial interest rate being the Secured Overnight Financing Rate (?SOFR?) plus 1.75%. JPMorgan Chase Bank, N.A. led the transaction with BofA Securities, Inc., Citizens Bank, N.A., PNC Bank, National Association, and Santander Bank, N.A. acting as joint lead arrangers and Fifth Third Bank, National Association, and Goldman Sachs Bank USA acting as co-documentation agents.