Flex Secures US$3.3b Term Loan Facility Tied to EPC Power Corp Acquisition

Simply Wall St··US·Read original
3▲1 ▼0Impact / 5
Summary · why it matters

Flex has secured a new undrawn US$3.3b senior term loan facility with Citibank and other lenders, tied to its planned EPC Power Corp acquisition and subject to rating-based covenants. The facility lands as the company's share price momentum cools after a strong run, with a 1 day return of 4.44% and a 7 day return of 2.76% clawing back some ground after an 11.76% decline over the past 90 days. Longer term enthusiasm remains far stronger, with a year to date share price return of 88.18%, a 1 year total shareholder return of 111.75% and a 5 year total shareholder return above 7x. Flex last closed at $119.83, while the most followed valuation narrative pegs fair value at $130.26, implying the stock trades at a discount. The company is positioning itself as a higher-margin engineered-solutions partner across AI infrastructure, supply chain nearshoring and energy transition power management, though it faces risks if large AI infrastructure projects are delayed or if the CPI spin off fails to secure strong standalone investor support.

Impact on assets 2

Artificial Intelligence▲
Flex Ltd
FLEX
▲ PositiveCapitalrelevance

Flex secured a new undrawn US$3.3b senior term loan facility tied to its planned EPC Power Corp acquisition, providing financing for the deal.

Digital Finance & Tokenization▲

Off-coverage companies 1

EPC Power Corp.i
Private± MixedCapitalrelevance

EPC Power Corp is the acquisition target in Flex's planned deal, but the article gives no details on the terms or impact for EPC itself.