Teradyne 8-K

Summary

Teradyne established a five-year, $1.0B senior secured revolving credit facility on 8/7/2026. It can support working capital and general corporate purposes; Teradyne had not borrowed under it at the time of the filing.

Key Figures

• Facility: $1.0B revolving commitment; loans may be prepaid without premium or penalty, subject to customary breakage costs.
• Pricing: outside an investment-grade suspension period, base rate + 0.00%–0.75% or SOFR + 1.00%–1.75%; during that period, base rate + 0.00%–0.50% or SOFR + 1.00%–1.50%. Unused commitment fees are 0.125%–0.225% outside the period and 0.10%–0.20% during it.
• Covenants: maximum consolidated leverage ratio of 3.50:1.00, increasing to 4.00:1.00 for the quarter of an acquisition exceeding $200M and the following three quarters; minimum interest coverage ratio of 2.50:1.00 except during an investment-grade suspension period.
• Security: guaranteed by certain wholly owned domestic subsidiaries and secured by Teradyne and subsidiary assets, including a pledge of 65% of the capital stock of certain foreign subsidiaries.

Investor Takeaways

• A qualifying investment-grade rating from at least two of S&P, Moody’s and Fitch releases collateral and guarantees and suspends specified covenants; a downgrade below the stated thresholds can reinstate them.