---
title: "Flex funded its $4.4 billion EPC Power purchase with loans due October 13, 2027, ahead of the Axiom spin-off"
description: "Flex closed its $4.4 billion purchase of power-electronics maker EPC Power on October 14 and funded it with two loans due on October 13, 2027. Whether that debt leaves with the Axiom spin-off now rests on antitrust clearance and a calendar Flex does not fully control."
publisher: "The Inference"
section: "Deals"
published: 2026-10-14T15:07:13.785Z
modified: 2026-10-14T15:07:13.785Z
canonical: https://theinference.org/article/flex-funded-its-4-4-billion-epc-power-purchase-with-loans-due-october-13-2027-ahead-of-the-axiom-spin-off
language: en
keywords: "Flex, M&A, Debt, Spin Offs, Data Centers"
---

# Flex funded its $4.4 billion EPC Power purchase with loans due October 13, 2027, ahead of the Axiom spin-off

> Flex closed its $4.4 billion purchase of power-electronics maker EPC Power on October 14 and funded it with two loans due on October 13, 2027. Whether that debt leaves with the Axiom spin-off now rests on antitrust clearance and a calendar Flex does not fully control.

[Flex](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000866374), the Singapore-incorporated contract manufacturer (Nasdaq: FLEX), [closed its $4.4 billion purchase of EPC Power on October 14](https://www.sec.gov/Archives/edgar/data/866374/000119312526421058/0001193125-26-421058-index.htm) and paid cash the same day [1]. The money came from two floating-rate loans arranged through Citibank, and both mature on October 13, 2027 [1]. The deal puts genuinely scarce power-conversion capability into Axiom, the AI infrastructure company Flex plans to spin off in the first quarter of 2027, and it leaves Flex's own shareholders holding a year of acquisition debt while that happens [1].

## What Flex bought is the part AI buildouts wait for

EPC Power, a Poway, California maker of [software-defined power conversion](https://www.nasdaq.com/press-release/epc-power-announces-sale-flex-44-billion-2026-09-03), is the kind of builder the AI buildout actually lacks [2]. Its grid-forming inverters and solid-state transformers move electricity from an aging grid onto the higher-voltage racks [Nvidia](https://theinference.org/markets/companies/nvidia)'s newest systems are built around, and more than 15 gigawatts of its hardware is already deployed [1] [3]. Flex expects [roughly $800 million of revenue from the business this year](https://finance.yahoo.com/technology/ai/articles/flexs-4-4b-epc-power-150600259.html) [4]. The price pays off private-equity owners [Goldman Sachs](https://theinference.org/markets/companies/goldman-sachs) Alternatives and Cleanhill Partners [2].

## The loans turn the spin-off into a deadline

The same filing that announced the close also wrote the repayment plan, and every step of it depends on Axiom rather than on Flex [1]. Flex must prepay the term loan the moment Axiom raises its own debt for the separation, and Axiom is meant to repay the balance out of a [$2 billion convertible preferred round led by General Catalyst with Koch Equity Development](https://www.marketwatch.com/story/flex-s-cloud-and-power-business-gets-2b-in-convertible-stock-investment-ahead-of-spinoff-c2738c3b) [1] [5]. That round, which valued Axiom at $37.5 billion, has not closed; it still needs antitrust clearance [1] [6]. The spin itself [still requires a shareholder vote and a Singapore court order](https://www.aol.com/articles/flex-unveils-axiom-ai-infrastructure-175514000.html) [7].

*Chart: **Flex's debt jumped 39 percent year over year before the acquisition loans even landed** Line chart of total debt on Flex's balance sheet across eight quarters, jumping to $5.9 billion in the quarter ended June 2026*

*Total debt on Flex's balance sheet at each quarter end, in billions of US dollars. Source: Flex quarterly SEC filings (source 10). [10]*

*Chart: **Two 364-day loans land on Flex's balance sheet; the pending preferred is the smaller repayment leg** Bar chart comparing Flex's existing debt at June 2026 with the term loan and bridge drawn on October 14, 2026, and the pending $2 billion preferred investment*

*Flex debt as of the quarter ended June 2026; loans drawn at closing under the term loan and bridge credit agreements; preferred investment signed but not yet closed. Sources: Flex Form 8-K, October 14, 2026; Flex quarterly SEC filings. [1][8]*

## Flex shareholders hold the clock

The draw nearly doubles the debt on Flex's balance sheet, under covenants that cap leverage at 4.5 times EBITDA [8] [1]. Nothing breaks if the spin happens on schedule. If it slips, Flex is left refinancing the full purchase price against a business it has promised to hand away: Flex shareholders are due the large majority of Axiom in the distribution, and Flex has [guaranteed to redeem the preferred at 115 percent of the investors' cost if no spin happens by December 31, 2027](https://cryptobriefing.com/flex-axiom-spinoff-ai-infrastructure-2027/) [6] [9]. The market started pricing this on October 13, when [the stock fell 6.9 percent on the separation's terms](https://finance.yahoo.com/markets/stocks/articles/why-flex-flex-shares-getting-185104884.html) [9].

EPC Power's engineers closed the gap between the grid and the AI chip, and the people who backed them were paid for it. What remains between that capability and Axiom's future shareholders is a closing calendar. Flex is lending Axiom its balance sheet for a year, and the interest on that loan is the risk Flex shareholders now carry.

## Takeaway

Flex paid cash for EPC Power with two loans that both mature on October 13, 2027, and wrote the repayment plan around Axiom's own debt raise and preferred round. Until the spin-off clears its shareholder vote, the court order and antitrust review, Flex shareholders carry the debt and the redemption floor.

## Sources

1. [SEC, Flex Ltd. Form 8-K: completion of EPC Power acquisition, bridge and term loan borrowings, Axiom spin-off, 14 October 2026](https://www.sec.gov/Archives/edgar/data/866374/000119312526421058/0001193125-26-421058-index.htm)
2. [EPC Power press release via Nasdaq, EPC Power Announces Sale to Flex for $4.4 Billion, 3 September 2026](https://www.nasdaq.com/press-release/epc-power-announces-sale-flex-44-billion-2026-09-03)
3. [Simply Wall St via Yahoo Finance, How Investors May Respond To Flex Securing New US$3.3 Billion Short-Term Loan For EPC Power Deal, 10 October 2026](https://finance.yahoo.com/markets/stocks/articles/investors-may-respond-flex-flex-151333340.html)
4. [Zacks Equity Research via Yahoo Finance, Flex's $4.4B EPC Power Buyout: A Bigger Bet on AI Data Center Growth?, 8 September 2026](https://finance.yahoo.com/technology/ai/articles/flexs-4-4b-epc-power-150600259.html)
5. [MarketWatch, Flex's Cloud and Power Business Gets $2B in Convertible Stock Investment Ahead of Spinoff, 5 October 2026](https://www.marketwatch.com/story/flex-s-cloud-and-power-business-gets-2b-in-convertible-stock-investment-ahead-of-spinoff-c2738c3b)
6. [Crypto Briefing, Flex plans Axiom spinoff to chase AI data center power demand in 2027, 13 October 2026](https://cryptobriefing.com/flex-axiom-spinoff-ai-infrastructure-2027/)
7. [Benzinga via AOL, Flex Unveils Axiom As Its AI Infrastructure Spin-Off, 15 September 2026](https://www.aol.com/articles/flex-unveils-axiom-ai-infrastructure-175514000.html)
8. [Flex quarterly figures (debt, cash, revenue, EBITDA) from its SEC filings, retrieved 14 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000866374)
9. [StockStory via Yahoo Finance, Why Flex (FLEX) Shares Are Getting Obliterated Today, 13 October 2026](https://finance.yahoo.com/markets/stocks/articles/why-flex-flex-shares-getting-185104884.html)
10. [Flex, quarterly figures from its SEC filings, retrieved 14 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000866374)


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Flex funded its $4.4 billion EPC Power purchase with loans due October 13, 2027, ahead of the Axiom spin-off — The Inference. Canonical: https://theinference.org/article/flex-funded-its-4-4-billion-epc-power-purchase-with-loans-due-october-13-2027-ahead-of-the-axiom-spin-off