Jabil Inc. Enters into a Senior Unsecured Credit Agreement
January 28, 2020 at 04:17 pm
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Jabil Inc. entered into a senior unsecured credit agreement. The agreement provides for a five-year revolving credit facility in the initial amount of $2.0 billion, or its currency equivalent (the “Five-Year Revolving Credit Facility”), a three-year revolving credit facility in the initial amount of $700.0 million, or its currency equivalent (the “Three-Year Revolving Credit Facility” and, together with the Five-Year Revolving Credit Facility, the “Revolving Credit Facilities”), which Revolving Credit Facilities may, subject to the lenders’ discretion, potentially be increased by up to an aggregate amount of $1.0 billion, or its currency equivalent, and a $300.0 million five-year term loan facility (the “Term Loan Facility” and, together with the Revolving Credit Facilities, the “Credit Facilities”). The Agreement was entered into among the Company; the initial lenders named therein; Citibank, N.A., as administrative agent; JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-syndication agents; BNP Paribas, Mizuho Bank Ltd., MUFG Bank Ltd. and Sumitomo Mitsui Banking Corporation, as documentation agents; and Citibank, N.A., JPMorgan Chase Bank, N.A., BofA Securities Inc., BNP Paribas Securities Corp., Mizuho Bank Ltd., MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation, as joint lead arrangers and joint bookrunners. The Five-Year Revolving Credit Facility and the Term Loan Facility expire approximately five years from the date of closing and the Three-Year Revolving Credit Facility expires approximately three years from the date of closing, but in the case of the Revolving Credit Facilities, each is subject to one-year extension options subject to the Company’s provision of notice prior to the first, second and/or third anniversaries of the closing date (subject to the lenders’ discretion).
Jabil Inc. specializes in electronic outsourcing services. Net sales break down by activity as follows:
- development of engineering solutions and services in the field of materials technology (51.7%): engineering, machining and manufacturing solutions for products made of plastics, metals, fibers and glass, and composite materials, etc. for consumer electronics, wearable technology, aeronautics, defense, health, mobility and packaging industries;
- design, engineering, mass production and assembly of electronic systems and subsystems (48.3%): for the automotive, transportation, heavy equipment, computer, home automation, energy, telecommunications, networking, distribution and printing industries. The group also offers 3D printing, prototyping and testing services, as well as supply chain management solutions and services.
Net sales are distributed geographically as follows: the United States (14.2%), Singapore (21.3%), Mexico (17.5%), China (16.9%), Malaysia (8%), India (4.6%) and other (17.5%).