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Penguin Solutions Strengthens Balance Sheet with Refinancing
Reduces Leverage, Extends Overall Debt Maturity, and Establishes $400M Revolving Credit Facility MILPITAS, Calif.--(BUSINESS WIRE)-- Penguin Solutions, Inc.
About this update from Penguin Solutions, Inc.
[{"type":"text","content":"\nReduces Leverage, Extends Overall Debt Maturity, and Establishes $400M Revolving Credit Facility\n\n\n MILPITAS, Calif.--(BUSINESS WIRE)--\nPenguin Solutions, Inc. (“Penguin Solutions” or the “Company”) (Nasdaq: PENG) today 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 (collectively, the “Credit Facilities”).\n\n\n“This refinancing represents a significant financial milestone for the Company,” said Nate Olmstead, chief financial officer. “As part of the transaction, the Company has meaningfully reduced leverage while also extending our overall debt maturity. This new financing provides future flexibility for the Company’s capital needs and reduces debt service costs due to the lower funded debt following this transaction.”\n\n\nThe transaction refinances and replaces the $300 million Term Loan A Facility due 2027 and the $250 million Revolving Credit Facility due 2027 (collectively, the “Existing Credit Facilities”). 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.\n\n\nThe 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%.\n\n\nJPMorgan 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.\n\n\nAdditional information about this transaction can be found in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.\n\n\nUse of Forward-Looking Statements\n\n\nThis press release contains “forward-looking statements,” which are based on current expectations and preliminar...