Penguin Solutions Announces Major Refinancing

By Tamara Parker • Thursday, June 26 15:54 • Permanent Link

Penguin Solutions, Inc. ("Penguin Solutions" or the "Company") (NASDAQ: PENG) has announced a major refinancing of its credit facilities, representing a significant financial milestone for the company. The new refinancing includes a $400 million revolving credit facility, which incorporates a $35 million letter of credit subfacility. This move has allowed the company to reduce leverage and extend its overall debt maturity.

In conjunction with the refinancing, the company has meaningfully reduced leverage while also extending its overall debt maturity. The 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 facility due 2027 and the $250 million revolving credit facility due 2027, collectively referred to as the "existing credit facilities." The existing credit facilities were repaid and terminated in connection with the transaction. Penguin Solutions closed the credit facilities 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, effectively reducing the company’s funded debt by $200 million.

The credit facilities mature in 2030 and 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, N.A. led the transaction with BofA Securities, Inc., Citizens Bank, N.A., PNC Bank, National Association, and Santander Bank, N.A. acting as joint lead arrangers and Fifth Third Bank, National Association, and Goldman Sachs Bank USA acting as co-documentation agents.

This move to strengthen the balance sheet and reduce leverage demonstrates the company's commitment to managing its financial obligations and securing a more favorable debt structure for the future. The market has reacted to these announcements by moving the company's shares 0.12% to a price of $20.4035. Check out the company's full 8-K submission here.

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