Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 53

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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, 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, our 2.00% Convertible Senior Notes due 2029 (the “2029 Notes”) and our 2.00% Convertible Senior Notes due 2030 (the “2030 Notes”) using the effective interest method. As of February 28, 2025 and August 30, 2024, the effective interest rate for our 2026 Notes was 2.83%. As of February 28, 2025 and August 30, 2024, the effective interest rate for our 2029 Notes was 2.40%. As of February 28, 2025 and August 30, 2024, the effective interest rate for our 2030 Notes was 2.65%. Aggregate interest expense for our convertible senior notes consisted of contractual stated interest and amortization of issuance costs and included the following:Three Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Contractual stated interest$1,842 $1,312 $3,684 $2,712 Amortization of debt issuance costs461 264 919 561 $2,303 $1,576 $4,603 $3,273 Maturities of DebtAs of February 28, 2025, maturities of debt were as follows:Remainder of 2025$— 202620,000 2027300,015 2028— 2029150,000 2030 and thereafter200,000 Less unamortized discount and issuance costs(11,224)$658,791 

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