Teradyne, Inc. entered into a new Credit Agreement on August 7, 2026, establishing a five-year, senior secured revolving credit facility of $1.0 billion. The facility, arranged with PNC Bank as the administrative agent, provides capital for working capital and general corporate purposes. The company has not borrowed any funds under the new facility at this time.
Key Details
- Facility Terms: The agreement provides for a five-year, $1.0 billion senior secured revolving credit facility. The agreement was executed on August 7, 2026.
- Interest and Fees: Interest rates are variable, based on SOFR plus a margin ranging from 1.00% to 1.75%, or a base rate plus a margin, contingent on the company's consolidated leverage ratio and/or debt rating. A commitment fee on the unused portion of the facility ranges from 0.10% to 0.225% per annum.
- Financial Covenants: The agreement contains covenants requiring Teradyne to maintain a maximum consolidated leverage ratio of 3.50:1.00 (with a temporary increase to 4.00:1.00 post-acquisition) and a minimum interest coverage ratio of 2.50:1.00. The facility is secured by assets of the company and certain domestic subsidiaries, with provisions for collateral release if the company achieves specified investment-grade ratings.