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Sanmina to up revolving commitments to $700 million, reset accordion
By Angela McDaniels
Tacoma, Wash., April 11 – Sanmina Corp. amended its credit agreement on April 5 to increase the revolving commitments to $700 million from $500 million, according to an 8-K filing with the Securities and Exchange Commission.
The increase will be made upon the satisfaction of certain conditions, including the repayment in full of the company’s 4 3/8% senior secured notes due June 2019. The company plans to repay the notes using the proceeds of the $375 million delayed-draw term loan provided for in the credit agreement.
Once the increase to the revolving commitments is made, the accordion feature of the credit agreement will be reset so that the company can obtain, subject to the satisfaction of specified conditions, up to $200 million of additional revolving commitments.
The delayed-draw term loan and the revolving commitments expire on Nov. 30, 2023.
Once the notes are repaid and all liens securing the notes are released, the company and the guarantors’ obligations under the credit agreement will be secured by substantially all of the assets (excluding real property) of the company and the guarantors, subject to certain exceptions.
Bank of America, NA is the administrative agent.
Sanmina is a San Jose, Calif.-based electronic manufacturing services provider.
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