Penguin Solutions Strengthens Balance Sheet with Refinancing
'This refinancing represents a significant financial milestone for the Company,' said Nate Olmstead, chief financial officer. 'As part of the transaction, the Company has meaningfully reduced leverage while also extending our overall debt maturity. This new financing provides future flexibility for the Company's capital needs and reduces debt service costs due to the lower funded debt following this transaction.'
The transaction refinances and replaces the $300 million Term Loan A Facility due 2027 and the $250 million Revolving Credit Facility due 2027 (collectively, the 'Existing Credit Facilities'). The Existing Credit Facilities were repaid and terminated in connection with the transaction. The Credit Facilities closed on June 24, 2025, and the Company borrowed $100 million under the new Revolving Credit Facility. The Company repaid in full the $300 million outstanding under the Existing Credit Facilities with a mix of the $100 million in borrowings under the Credit Facilities and $200 million in available cash, reducing the Company's funded debt by $200 million.
The Credit Facilities mature in 2030. Interest on the Credit Facilities will be based on a Total Net Leverage grid, with the initial interest rate being the Secured Overnight Financing Rate ('SOFR') plus 1.75%.
JPMorgan Chase Bank, N.A. led the transaction with BofA Securities, Inc., Citizens Bank, N.A., PNC Bank, National Association, and Santander Bank, N.A. acting as joint lead arrangers and Fifth Third Bank, National Association, and Goldman Sachs Bank USA acting as co-documentation agents.
Additional information about this transaction can be found in a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission.
Use of Forward-Looking Statements
This press release contains 'forward-looking statements,' which are based on current expectations and preliminary assumptions that are subject to factors and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside the Company's control, including, among others: the Company's liquidity position, the Company's ability to draw on the Credit Facilities, the Company's compliance with the terms and conditions of the Credit Facilities (including the covenants contained therein), fluctuations in the SOFR, the aggregate overall level of indebtedness that the Company incurs, global business and economic conditions, and other factors and risks detailed in the Company's filings with the U.S. Securities and Exchange Commission, which include the Company's most recent reports on Form 10-K and Form 10-Q.
Such factors and risks as outlined above and in such filings do not constitute all factors and risks that could cause actual results of Penguin Solutions to be materially different from our forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made.
About Penguin Solutions
The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our Advanced Computing, Integrated Memory, and Optimized LED business segments. With our expert skills, experience, and partnerships, we turn our customers' most complex challenges into compelling opportunities.
For more information, visit https://www.penguinsolutions.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Why Five9 Stock Was Flailing on Friday
Key Points The company notched a double beat in its second quarter, but that wasn't good enough for the market. Investors seemed more concerned about a coming change in top management. 10 stocks we like better than Five9 › Contact center software solutions provider Five9 (NASDAQ: FIVN) has been having a forgettable Friday on the stock exchange. After the company published its latest set of quarterly results and announced a top-level managerial change, investors sold out of its stock to the point where it was down nearly 4% in late-session trading. That slide was notably more pronounced than the 1.7% decrease of the S&P 500 index. Double-digit improvements For its second quarter, Five9 posted a record-high revenue figure of over $283 million, which was 12% higher year over year. Artificial intelligence (AI) played a significant role in this, as the company's enterprise AI revenue advanced by 42% during the period. As for profitability, it also rose at a double-digit rate. Non-GAAP (adjusted) net income came in at over $58 million ($0.76 per share), well up from the nearly $39 million in the year-ago period. Analysts tracking the stock were expecting an adjusted net income figure of $0.62, on revenue of slightly more than $275. Five9 also proffered guidance for both its current (third) quarter and the entirety of 2025. For the latter period, it's modeling slightly over $1.14 billion to almost $1.15 billion for revenue, and adjusted net income ranging from $2.86 to $2.90 per share. The consensus analyst projections for the two metrics are a bit more than $1.14 billion and $0.70, respectively. Successful CEO is stepping down That double beat was good news, but this was obscured by the company's announcement that CEO Mike Burkland is retiring. He will stay in the job until a replacement is found. Burkland served as Five9's leader from 2008 to 2017, until he was diagnosed with cancer. He returned to the position in 2022. In its announcement of his departure, Five9 said that Buckland was at the helm of the company as it achieved notable milestones, and it credited him for growing it from $10 million to more than $1 billion in annual revenue. It's little wonder investors were displeased to hear of his looming departure. Do the experts think Five9 is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Five9 make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,036% vs. just 181% for the S&P — that is beating the market by 855.09%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Five9. The Motley Fool has a disclosure policy. Why Five9 Stock Was Flailing on Friday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
43 minutes ago
- Yahoo
Why Roku Stock Took a Dive Today
Key Points Roku posted solid growth on the top and bottom lines, but investors were still unsatisfied with the report. After it surged through May and June, investors seemed to think the stock had run too high. Roku's losses are improving, but investors typically demand faster growth from an unprofitable company. 10 stocks we like better than Roku › Shares of Roku (NASDAQ: ROKU) were tumbling today even though the leading streaming distribution platform topped headline estimates. Investors still seemed to find fault with key metrics in the quarter, as well as with its guidance and valuation. As a result, the stock was down 15.5% at 2:14 p.m. ET. Roku is moving in the right direction Roku is still losing money on a generally accepted accounting principles (GAAP) basis, but the company is making strides toward profitability. In the second quarter, Roku reported revenue of $1.11 billion, up 15% from the quarter a year ago, which was better than estimates at $1.07 billion. Revenue from devices was down 6% to $135.6 million, which could be a bad sign, as device sales help grow its customer base. Platform revenue, its core business, which is driven by advertising and subscription revenue share, was up 18% to $975.5 million. Streaming hours watched rose 17% to 35.4 billion, a positive trend for consumption. On the bottom line, the company showed improvement as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 79% to $78.2 million. GAAP operating loss, meanwhile, narrowed from $71.2 million to $23.3 million. With the help of $28 million in other income from interest and strategic investments, Roku reported a GAAP per-share profit of $0.07, up from a loss in the quarter a year ago of $0.24 and better than estimates at a per-share loss of $0.16. Management credited its solid growth to "strong performance in video advertising and the successful acquisition of Frndly," as well as new ad tech integrations, including with Amazon. What's next for Roku Looking ahead, Roku expects $1.205 billion in revenue for the third quarter, or 13% growth, though that was ahead of the consensus at $1.17 billion. Its full-year revenue guidance of $4.65 billion was slightly below the average estimate at $4.66 billion. The company also announced a $400 million share buyback program. Overall, the results weren't the kind that typically lead to a double-digit decline. However, investors seem frustrated with Roku's operating losses and its valuation, considering it's expected to grow only in the low teens to midteens for the rest of the year. The stock soared in May and June, benefiting from the broader market recovery and its new ad partnership with Amazon. In that context, today's pullback seems to be more of a reset than a new trend in the stock. Should you buy stock in Roku right now? Before you buy stock in Roku, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Roku wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Jeremy Bowman has positions in Amazon and Roku. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool has a disclosure policy. Why Roku Stock Took a Dive Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Align Technology (ALGN) Dives 37% on Lower Price Target, Pessimistic Rating
We recently published . Align Technology, Inc. (NASDAQ:ALGN) is one of the worst-performing stocks on Thursday. Align Technology fell to a new low on Thursday as investors sold off positions after missing earnings expectations and earning a lower price target and pessimistic rating from an investment firm. In intra-day trading, Align Technology, Inc. (NASDAQ:ALGN) dropped to its lowest price of $127.7 before slight buying pushed the company's share price higher to end the day just down by 36.63 percent at $129.01 apiece. This followed mixed earnings performance during the quarter that saw the company record a non-GAAP net income of $181.1 million, flat from last year. GAAP net income, on the other hand, amounted to $124.6 million, or 29 percent higher than the $93.2 million in the same period last year. Net revenues, on the other hand, dipped by 1.6 percent to $1.012 billion from $1.028 billion year-on-year. In other developments, Mizuho reduced its price target for Align Technology, Inc. (NASDAQ:ALGN) to $210 from $245 previously, but maintained an 'outperform' rating for the stock. Mizuho's revision followed reports about June trends, which fell short of expectations, despite the company's hosting of an 'upbeat analyst meeting' in May this year. Pixabay/Public domain Additionally, the revision reflected the weaker-than-expected patient conversion rates despite iTero scans and Invisalign doctor case submissions appearing to remain on track. While we acknowledge the potential of ALGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
