Company: PENG
Filing Date: 2025-06-26
Form Type: 8-K
Source: 0001193125-25-147869
Chunk: 4

Company: Penguin Solutions, Inc.
Filing Date: 2025-06-26
Form: 8-K
Item: Item 1.02
Chunk 4
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Item 1.02.      Termination of Material Definitive Agreement.  

In connection with its entry into the Credit Agreement as described under Item 1.01, and the concurrent repayment in full of all borrowings, and termination of all outstanding commitments under, the Existing Credit Agreement, on the Closing Date, the Existing Credit Agreement was terminated. Voluntary prepayments of the loans and voluntary reductions of the unutilized portion of the revolving commitments under the Existing Credit Agreement are permissible without penalty subject to certain conditions pertaining to minimum notice and minimum reduction amounts as described in the Existing Credit Agreement.

The Existing Credit Agreement provided for a $300 million term loan “ A” facility due 2027 (the “2027 Term Loan”) and a $250 million revolving credit facility due 2027 (the “2027 Revolver”). Immediately prior to the repayment and termination of the Existing Credit Agreement, the Company had $300 million of principal outstanding under the 2027 Term Loan, with unamortized issuance costs of $1.8 million and an effective interest

rate of 7.17%, and no amounts outstanding under the 2027 Revolver, with unamortized issuance costs of $1.5 million. Absent termination, such revolving credit facility and term loan facility would have matured on February 7, 2027.

The Existing Credit Agreement contained certain customary restrictive loan covenants, including, among others, a financial covenant requiring maximum leverage ratios, and covenants that limited or restricted the Company’s ability to grant liens, make acquisitions, be acquired, dispose of assets, pay dividends, repurchase stock, make investments and enter into certain transactions with affiliates.

  Item 2.03.      Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.  

The information set forth under Item 1.01 with respect to the Credit Agreement is incorporated herein by reference.

  Item 7.01.      Regulation FD Disclosure.  

On June 26, 2025, the Company issued a press release announcing the entry into the Credit Agreement and the repayment of borrowings under and termination of the Existing Credit Agreement. A copy of the press release is attached hereto as Exhibit 99.1.

The information furnished pursuant to Item 7.01 of this Current Report on Form8-K, including the information contained in Exhibit 99.1 of this Current Report on Form8-K, shall not be deemed “filed”