Penguin Solutions completed a refinancing of its credit facilities via a $400 million revolving credit facility, which includes a $35 million letter of credit subfacility.

“This refinancing represents a significant financial milestone for the Company,” said Nate Olmstead, chief financial officer. “As part of the transaction, the Company has meaningfully reduced leverage while also extending our overall debt maturity. This new financing provides future flexibility for the Company’s capital needs and reduces debt service costs due to the lower funded debt following this transaction.”

The transaction refinances and replaces the $300 million Term Loan A Facility due 2027 and the $250 million Revolving Credit Facility due 2027 (collectively, the “Existing Credit Facilities”). The Existing Credit Facilities were repaid and terminated in connection with the transaction. The Credit Facilities closed on June 24, 2025, and the Company borrowed $100 million under the new Revolving Credit Facility. The Company repaid in full the $300 million outstanding under the Existing Credit Facilities with a mix of the $100 million in borrowings under the Credit Facilities and $200 million in available cash, reducing the Company’s funded debt by $200 million.

The Credit Facilities mature in 2030. Interest on the Credit Facilities will be based on a Total Net Leverage grid, with the initial interest rate being the Secured Overnight Financing Rate (“SOFR”) plus 1.75%.

JPMorgan Chase Bank led the transaction with BofA Securities, Citizens Bank, PNC Bank, and Santander Bank acting as joint lead arrangers and Fifth Third Bank and Goldman Sachs Bank USA acting as co-documentation agents.