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Sanmina Corporation Enters into $3.5 Billion Credit Agreement

Strategic Insights

— 1 min read

Sanmina Corporation, a leading manufacturer of integrated manufacturing solutions, has entered into a $3.5 billion credit agreement with Bank of America, N.A., as administrative agent, and several other lenders. The agreement, executed on July 29, 2025, provides for committed senior secured credit facilities consisting of a $1.5 billion revolving credit facility and a $2.0 billion term loan A facility.

Key Takeaways:

  • The credit agreement allows Sanmina Corporation to borrow up to $3.5 billion, with a revolving credit facility of $1.5 billion and a term loan A facility of $2.0 billion.
  • The agreement is secured by first-priority liens on substantially all of Sanmina's assets, subject to certain exceptions and thresholds.
  • The company will use the credit facilities to finance a portion of the ZT Group Int'l, Inc. (ZT) acquisition, refinance ZT's existing credit agreement, refinance all amounts outstanding under Sanmina's existing loan agreement, and pay fees, costs, and expenses related to the transactions.
  • The interest rates for the borrowings under the Credit Agreement will be at the Company's option, at either a base rate plus an applicable margin ranging from 0.375% to 1.000% or a term SOFR-based rate plus an applicable margin ranging from 1.375% to 2.000%.
  • Sanmina is required to comply with certain affirmative and negative covenants, including maintaining a minimum consolidated cash interest coverage ratio of 3.00 to 1.00 and a maximum consolidated total net leverage ratio of 4.00 to 1.00.
  • The Credit Agreement includes customary events of default, including payment defaults, cross defaults with certain other indebtedness, breaches of covenants or representations and warranties, change in control of the Company, and certain bankruptcy or insolvency events.

Statistics:

  • $3.5 billion: Total amount of credit facilities available to Sanmina Corporation
  • $1.5 billion: Size of revolving credit facility
  • $2.0 billion: Size of term loan A facility
  • 4.00 to 1.00: Maximum consolidated total net leverage ratio
  • 3.00 to 1.00: Minimum consolidated cash interest coverage ratio
  • 0.375% - 1.000%: Range for base rate plus applicable margin
  • 1.375% - 2.000%: Range for term SOFR-based rate plus applicable margin

Sources:

  • SANMINA CORP. (2025). Form 8-K: Current Report. UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

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