Flex Ltd. Secures $4.4 Billion in Short-Term Financing for EPC Power Acquisition

Flex Ltd. (FLEX) has finalized $4.4 billion in short-term credit facilities to finance its purchase of EPC Power and cover associated transaction costs. The funding consists of a new $1.1 billion senior bridge term loan entered into on October 9, 2026, and fully drawn on October 14, 2026, along with $3.3 billion drawn under a previously signed 364-day senior term loan from September 29, 2026. Both facilities mature in 364 days and feature floating interest rates tied to Term SOFR or Base Rate.

The substantial debt package allows Flex Ltd. to complete its takeover of EPC Power, though the heavy borrowing adds short-term financial commitments to its balance sheet. Shareholder reaction was cautious, with shares of the company declining 5.42% to $110.90 following the financing update. Both credit agreements are administered by Citibank and carry floating margins linked to credit ratings alongside standard financial covenants.

Investors will track the planned refinancing of the loan package, particularly the requirement to prepay the $3.3 billion facility when anticipated Axiom financing is executed during an upcoming spin-off. Market participants will also evaluate how smoothly EPC Power is integrated and whether the debt load impacts future liquidity.