Penguin Solutions Inc. has successfully completed a refinancing of its credit facilities with a $400 million Revolving Credit Facility, including a $35 million letter of credit subfacility. This strategic move, led by JPMorgan Chase Bank and supported by several key financial institutions such as BofA Securities, Citizens Bank, PNC Bank, Santander Bank, Fifth Third Bank, and Goldman Sachs, significantly reduces the company's leverage and extends the maturity of its overall debt. The new facility, which replaces the previous $300 million Term Loan A Facility and $250 million Revolving Credit Facility, allows for greater financial flexibility and lowers debt service costs. Penguin Solutions has borrowed $100 million under the new arrangement, repaying the existing facilities with a combination of these funds and $200 million in cash, effectively reducing its funded debt by $200 million. The Credit Facilities, which mature in 2030, will have interest rates based on a Total Net Leverage grid, starting with the SOFR plus 1.75%.
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