Company: PENG
Filing Date: 2025-06-26
Form Type: 8-K
Source: 0001193125-25-147869
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Company: Penguin Solutions, Inc.
Filing Date: 2025-06-26
Form: 8-K
Item: Item 1.01
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Item 1.01.      Entry into a Material Definitive Agreement.  

On June 24, 2025 (the “ Closing Date”), Penguin Solutions, Inc., a Cayman Islands exempted company (the “ Company” or the “ Parent Borrower”), and SMART Modular Technologies, Inc., a California corporation (the“ Co-Borrower”and together with the Parent Borrower, the “ Borrowers”), entered into that certain Credit Agreement (the “ Credit Agreement”), by and among the Borrowers, the lenders party thereto, and JPMorgan Chase Bank, N. A., as administrative agent, collateral agent and an issuing bank.

The Credit Agreement provides for a revolving credit facility in an aggregate principal amount of $400 million (the “ Facility” and the revolving loans thereunder, the “ Loans”), maturing on June 24, 2030 (subject to certain earlier “springing maturity” dates upon certain conditions specified in the Credit Agreement). The Credit Agreement provides that up to $35 million of the Facility is available for issuances of letters of credit.

On the Closing Date, the Company borrowed $100 million under the Facility, and applied such proceeds, together with $200 million of cash on hand, to repay in full all borrowings and terminate all commitments under that certain Credit Agreement, dated as of February 7, 2022 and as amended prior to the date hereof, by and among the Borrowers, the subsidiary loan parties party thereto, the lenders party thereto and Citizens Bank, N. A., as administrative agent, collateral agent and an issuing bank (the “ Existing Credit Agreement”).

Under the Credit Agreement, Loans bear interest at a rate per annum equal to either, at the Borrowers’ option, a Term Secured Overnight Financing Rate (“ Term SOFR”) rate or a base rate, in each case plus an applicable margin based on the Total Leverage Ratio (as defined in the Credit Agreement) of the Borrower as follows:

  Level      Total Leverage Ratio                           Base Rate              Term SOFR  
                                                    Applicable Margin      Applicable Margin  
 ──────────────────────────────────────────────────────────────────────────────────────────────
      1      ≥ 4.50 to 1.00                                     2.00%                  3.00%  
      2      < 4.50 to 1.00 but ≥ 3.75 to 1.00                  1.75%                  2.75%  
      3