SANMINA CORPORATION (NASDAQ:SANM) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Sanmina Corporation (the Company) is party to the Fourth Amended and Restated Credit Agreement, entered into as of November 30, 2018, among the Company, the lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent (the Administrative Agent), Swing Line Lender and an Issuing Lender (as amended, the Credit Agreement). On May 31, 2019, the Company borrowed the $375.0 million secured delayed draw term loan available under the Credit Agreement and applied the proceeds to effect the satisfaction and discharge of the Indenture that was dated as of June 4, 2014 (as supplemented, the Indenture), by and between the Company and U.S. Bank National Association, as trustee, to which the Company had previously issued its $375 million principal amount 4.375% Senior Secured Notes that were due on June 1, 2019 (the Senior Notes). The $375.0 million secured delayed draw term loan has a maturity date of November 30, 2023.
Following the satisfaction and discharge of the Indenture using the proceeds of the delayed draw term loan and the release of all liens securing the Senior Notes, the Companys debt structure changed as follows, effective June 3, 2019: (i) the revolving commitments under the Credit Agreement increased by $200.0 million, for a total of $700.0 million in revolving commitments, (ii) the accordion feature of the Credit Agreement was reset so that the Company can obtain, subject to the satisfaction of specified conditions, additional revolving commitments in an aggregate amount of up to $200.0 million, and (iii) the Company and its subsidiary guarantors obligations under the Credit Agreement became secured by substantially all of the assets (excluding real property) of the Company and the subsidiary guarantors, subject to certain exceptions and (iv) the $375 million secured delayed draw term loan has a maturity date of November 30, 2023.
The press release announcing the retirement of the Senior Notes is attached hereto as Exhibit 99.1
ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
Also, on May 31, 2019, William J. DeLaney, a member of the Board of Directors of the Company notified the Company of his resignation from the Board and the committees on which he serves, effective immediately.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.