Plexus Corp. (NASDAQ:PLXS) announced Monday that it has entered into a Second Amended and Restated Credit Agreement, replacing its previous credit agreement from June 2022. The new agreement, signed June 5, 2026, involves Plexus and certain subsidiaries as borrowers, with JPMorgan Chase Bank, N.A. serving as administrative agent.
The credit facility provides a revolving commitment of $500 million, with the option for Plexus to increase the total commitment by an additional $250 million, subject to specified conditions. The maturity date for the facility is June 5, 2031.
Borrowings under the agreement will bear interest at rates based on the company’s choice of an alternate base rate, Term SOFR, EURIBOR, or Daily Simple SONIA, with an added margin determined by the ratio of the company’s consolidated total debt (less certain unrestricted cash and equivalents, up to $150 million) to consolidated EBITDA. Plexus will also pay a fee on the daily unused portion of the credit facility, ranging from 10 to 25 basis points, depending on the same leverage ratio.
The agreement includes financial covenants. Plexus must maintain an interest coverage ratio—consolidated EBITDA to cash consolidated interest expense—of at least 3.00 to 1.00, and a leverage ratio—consolidated total debt to consolidated EBITDA—of no more than 3.50 to 1.00. The leverage ratio may be temporarily increased to 4.25 to 1.00 in connection with certain material acquisitions.The company currently maintains total debt of $267.67 million against EBITDA of $299.68 million, well within covenant requirements. According to InvestingPro analysis, Plexus operates with a moderate level of debt, reflected in its debt-to-equity ratio of just 0.18. Despite strong stock performance—shares have surged 112% over the past year to $282.29—InvestingPro Fair Value analysis suggests the stock is currently overvalued. For investors seeking deeper insights, Plexus is among the 1,400+ US equities covered by comprehensive Pro Research Reports, which transform complex financial data into clear, actionable intelligence.
The company stated that the new agreement replaces its prior credit agreement in its entirety. This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Plexus Corp reported impressive financial results for fiscal Q2 2026, surpassing both earnings and revenue forecasts. The company achieved earnings per share of $2.05, exceeding the anticipated $1.88, and reported revenue of $1.164 billion, which was above the forecasted $1.13 billion. These results highlight the company’s strong performance in the recent quarter. Additionally, Needham raised its price target for Plexus shares to $310 from $285, maintaining a Buy rating. The firm expressed increased confidence in Plexus’s growth prospects and its positioning in high-growth markets. Meanwhile, Stifel reiterated its Buy rating and maintained a $280 price target following a site visit to Plexus’s Wisconsin facilities. These developments indicate a positive outlook from analysts regarding Plexus’s future performance.
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