Company: PENG
Filing Date: 2025-07-08
Form Type: 10-Q
Source: 0001628280-25-034541
Chunk: 150

Company: Penguin Solutions, Inc.
Filing Date: 2025-07-08
Form: 10-Q
Item: Part II, Item 8
Chunk 150
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 30, 2024, respectively.

DebtAs ofMay 30,2025August 30,2024Amended 2022 TLA$298,107 $297,297 2030 Notes193,613 192,778 2029 Notes147,842 147,439 2026 Notes19,916 19,833 659,478 657,347 Less current debt(19,916)— Long-term debt$639,562 $657,347 Credit FacilityOn February 7, 2022, Penguin Solutions and SMART Modular Technologies, Inc. entered into a credit agreement (the “2022 Original Credit Agreement”) with a syndicate of banks and Citizens Bank, N.A., as administrative agent that provided for (i) a term loan credit facility in an aggregate principal amount of $275.0 million and (ii) a revolving credit facility in an aggregate principal amount of $250.0 million, in each case, maturing on February 7, 2027. The 2022 Original Credit Agreement was subsequently amended (the “2022 Amended Credit Agreement”), and as of May 30, 2025, pursuant to the 2022 Amended Credit Agreement, there was $300.0 million of principal amount outstanding under the Amended 2022 TLA, unamortized issuance costs were $1.9 million and the effective interest rate was 7.17%. As of May 30, 2025, there were no amounts outstanding under the 2022 Revolver and unamortized issuance costs were $1.6 million.

19

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