Sanmina signs $3.5 billion credit agreement to fund ZT Group acquisition
Sanmina entered a $3.5 billion senior secured credit agreement on July 29, 2025, with Bank of America as administrative agent. The facilities are unfunded for now and will be drawn at the closing of the previously announced ZT Group acquisition, and they will also refinance the company's existing loan agreement. The new debt adds leverage and secured obligations for shareholders, but the company's covenants and the acquisition's closing conditions are not yet satisfied.
Key points
- Credit facilities total $3.5 billion: a $1.5 billion revolving facility and a $2.0 billion term loan A facility, maturing five years from the initial funding date.
- Facilities are unfunded as of July 29, 2025, and will be drawn when the ZT Group acquisition closes; they terminate if funding does not occur five business days after the Outside Date in the May 18, 2025 equity purchase agreement.
- Expected margin at initial funding is 0.75% for base rate loans and 1.75% for term SOFR loans, with a ticking fee of 0.25% annually on unfunded commitments starting on the 60th day after signing.
- Covenants require a minimum cash interest coverage ratio of 3.00 to 1.00 and a maximum total net leverage ratio of 4.00 to 1.00, and obligations will be secured by first-priority liens on substantially all company assets.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 12:57 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 30, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.