Loan & DebtApr 28, 2026, 08:08 AM
CLS Amends Credit Agreement; Conditional Collateral Release
AI Summary
Celestica Inc. has executed a Second Amendment to its Amended and Restated Credit Agreement, effective April 27, 2026. This amendment introduces a conditional collateral release, which will take effect once the company achieves at least two investment-grade corporate ratings and fully repays its Term B Loan and any Incremental Tranche B Term Loans. Additionally, the lenders have approved the immediate release of Malaysian Guarantors and their associated collateral, effective April 24, 2026. The amendment also includes a reallocation of revolving and Term A loan commitments among the participating lenders.
Key Highlights
- Second Amendment to Amended and Restated Credit Agreement effective April 27, 2026.
- Conditional collateral release upon achieving at least two investment-grade corporate ratings (Baa3/BBB- or higher).
- Conditional collateral release also requires full repayment of Term B Loan and any Incremental Tranche B Term Loans.
- All Liens on collateral (except cash) to be terminated upon meeting conditions for conditional release.
- Lenders consented to the immediate release of Malaysian Guarantors and related collateral effective April 24, 2026.
- Revolving and Term A Loan commitments reallocated among lenders.
- Collateral requirement waived for deposit/securities accounts not exceeding $1,500,000.
Price Impact
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