Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 80

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part II, Item 8
Chunk 80
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(1)Included accounts payable for property and equipment of $0.9 million and $0.4 million as of November 29, 2024 and August 30, 2024, respectively.

DebtAs ofNovember 29,2024August 30,2024Amended 2027 TLA$297,561 $297,297 2030 Notes193,066 192,778 2029 Notes147,581 147,439 2026 Notes19,862 19,833 658,070 657,347 Less current debt— — Long-term debt$658,070 $657,347 

16

Credit FacilityOn February 7, 2022, Penguin Solutions and SMART Modular Technologies, Inc. (collectively, the “Borrowers”) entered into a credit agreement, as subsequently amended, with a syndicate of banks and Citizens Bank, N.A., as administrative agent that provided for a term loan credit facility (the “Amended 2027 TLA”) and a revolving credit facility (the “2027 Revolver”), in each case, maturing on February 7, 2027. As of November 29, 2024, there was $300.0 million of principal amount outstanding under the Amended 2027 TLA, unamortized issuance costs were $2.5 million and the effective interest rate was 7.68%. As of November 29, 2024, there were no amounts outstanding under the 2027 Revolver and unamortized issuance costs were $2.0 million.Convertible Senior NotesRepurchase of Convertible Senior NotesOn August 6, 2024, we repurchased $80.0 million aggregate principal amount of our 2.25% Convertible Senior Notes due 2026 (the “2026 Notes”) for $100.6 million cash (including payment for accrued interest) in privately-negotiated transactions. The repurchase was accounted for as debt extinguishment. Accordingly, we recognized a loss in the fourth quarter of 2024, included in other non-operating expense, of $20.4 million, consisting of $19.7 million premium paid to extinguish the 2026 Notes and $0.7 million for the write-off of unamortized issuance costs.Convertible Senior Notes InterestUnamortized debt discount and issuance costs are amortized over the terms of our 2026 Notes,