Company: PENG
Filing Date: 2025-06-26
Form Type: 8-K
Source: 0001193125-25-147869
Chunk: 1

Company: Penguin Solutions, Inc.
Filing Date: 2025-06-26
Form: 8-K
Item: Item 1.01
Chunk 1
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      < 3.75 to 1.00 but ≥ 3.25 to 1.00                  1.50%                  2.50%  
      4      < 3.25 to 1.00 but ≥ 2.50 to 1.00                  1.25%                  2.25%  
      5      < 2.50 to 1.00 but ≥ 1.75 to 1.00                  1.00%                  2.00%  
      6      < 1.75 to 1.00 but ≥ 1.25 to 1.00                  0.75%                  1.75%  
      7      < 1.25 to 1.00                                     0.25%                  1.25%  

The initial Loans under the Facility will accrue interest at the rates set forth in Level 6 above.

The Borrowers are also required to pay the lenders a quarterly commitment fee on the unused portions of the Facility at an initial rate of 0.25%, which may be increased in increments of 0.025% based on certain Total Leverage Ratio levels specified in the Credit Agreement up to a maximum rate of 0.35%. All applicable margins and commitment fees described above are expressed on a per annum basis.

The Credit Agreement contains representations and warranties and affirmative and negative covenants customary for secured financings of this type, as described in the Credit Agreement. The Credit Agreement contains a number of negative covenants that, among other things, restrict, subject to certain exceptions, the Borrowers’ ability and the ability of the Borrowers’ subsidiaries to: incur additional indebtedness; create liens on assets; engage in mergers or consolidations; sell assets; pay dividends; make distributions or repurchase capital stock; make investments, loans or advances; repay or repurchase certain subordinated debt (except as scheduled or at maturity); create restrictions on the payment of dividends or other amounts to the Borrowers from the Borrowers’ restricted subsidiaries; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing the Borrowers’ subordinated debt and fundamentally change the Borrowers’ business.

The Credit Agreement also includes the following financial maintenance covenants tested on the final day of each fiscal quarter:

(i) a First Lien Leverage Ratio (as defined in the Credit Agreement) of 3.25 to 1.00;

(ii) a