Sanmina pushed $3.5 billion of loan maturities to 2031

Sanmina▲+4.68% — Sanmina, up 4.68 percent today chief financial officer Jonathan Faust signed one filing Monday night, November 9: an 8-K, the SEC form companies file for material events, with two documents inside ¹. A press release guided fiscal 2027 revenue to $17.5 billion to $19.5 billion, the beat our November 10 story told ¹. Beside it, under the heading reserved for other news, sat Amendment No. 5 to the company's Bank of America credit agreement↗ ¹.

The guide moved the market: shares jumped 20.21 percent after hours to $179.88, and Benzinga's story that night quoted the release↗ without a word on the amendment ².

By Tuesday morning the stock stood at $160.41, still 43.3 percent below its June high ³.

Three facilities, one 2031 maturity

The amendment, effective October 27, funded $70 million of incremental term loans, returning the term loan to its original $1.4 billion ¹. Roughly $3.5 billion of borrowings now mature on October 28, 2031: the term loan, a $1.5 billion revolving credit line, and a $600 million delayed-draw facility, committed money Sanmina can call until April 27, 2027, in at most two tranches ¹.

The complex was first arranged in July 2025, with $800 million of further term loans added toward the ZT Systems purchase ⁴. Pricing shifts from a leverage grid to S&P and Moody's·−0.07% — Moody's, down 0.07 percent as of its last quote debt ratings, initially 1.5 points over SOFR, the short-term benchmark rate ¹.

The ramp runs on bank money

Required repayment starts low: 2.5 percent of the original principal a year for two years, 5 percent through year four, 10 percent after, balance due at maturity ¹. On $1.4 billion that first step works out to roughly $35 million a year, while Helios, Sanmina's AI computing-rack program, ramps toward a fiscal 2027 weighted to its second half ¹⁵.

Fiscal 2026 shows why the slack matters: $944 million of operating cash flow, $541 million free after $403 million of capital spending, and $393 million of buybacks, nearly three of every four free dollars ¹. Interest expense rose to $122 million from $20 million, with $1.68 billion of cash at year end ¹. And $2.2 billion of long-term debt proceeds came in during the year, against $1.11 billion paid out for ZT Systems, the data-center hardware business bought from AMD▲+2.24% — AMD, up 2.24 percent today for about $2.55 billion plus up to $450 million in earnouts ¹⁶.

The guide is adjusted only

The fiscal 2027 profit guide, $15.50 to $17.50 a share, is non-GAAP, strips items like acquisition costs, and cannot be reconciled to GAAP without unreasonable effort; fiscal 2026 GAAP earnings were $6.85 against $13.28 adjusted ¹. The beat was real: fourth-quarter revenue rose 84 percent↗, a fifth straight bottom-line beat ⁷, cloud and AI systems are guided to $7.5 billion to $9 billion↗ ⁵⁸, with a third customer platform under negotiation outside the guide. "First, we've got to get that deal done," Faust said ⁵.

The window closes in April

Two readings will say more than the pop: whether the $600 million is drawn before April 27, 2027, ahead of the second-half ramp it would fund, and the January quarter, the first reported on the new terms ¹. The filing settles one thing already: the liens securing the credit agreement stay in full force, unimpaired and with the same priority, over the new loans and every extended facility ¹.