Jabil Inc. Strengthens Financial Flexibility with New $3.2 Billion Revolving Credit Facility in 2025
Jabil Inc. (NYSE: JBL), a leading global manufacturing solutions provider, has taken a significant step to enhance its financial flexibility and liquidity by entering into a new senior unsecured revolving credit agreement valued initially at \(3.2 billion, with an option to increase by an additional \)1 billion. This strategic financial move, announced on June 18, 2025, underscores Jabil’s commitment to maintaining robust capital resources to support its operational and growth initiatives.
The newly established revolving credit facility spans five years with potential unlimited one-year extensions, subject to lender approval, ensuring long-term financial stability. The facility supports multiple currencies including U.S. Dollars, Euros, and Yen, reflecting Jabil’s global operational footprint. Interest rates on advances under this facility are competitively priced, ranging from 0.00% to 0.45% above the base rate or 0.90% to 1.45% above benchmark rates, calibrated according to Jabil’s current senior unsecured debt ratings by S&P Global Ratings, Moody’s, and Fitch Ratings. Currently, the applicable interest rates stand at 0.075% above the base rate and 1.075% above the benchmark rate, reflecting Jabil’s strong credit profile.
This new credit agreement replaces Jabil’s previous credit agreement from January 2020, which also totaled $3.2 billion but was segmented into three- and five-year revolving credit facilities. Notably, Jabil executed this transition without incurring any early termination penalties, demonstrating prudent financial management.
From a financial perspective, Jabil reported total revenues of approximately $28.88 billion for fiscal year 2024, with a debt-to-equity ratio of 0.5843 and a current ratio of 1.0856, indicating a balanced approach to leverage and liquidity. The company’s operating cash flow to net income ratio of 1.2363 further highlights its strong cash generation capabilities relative to earnings, a critical factor in sustaining operational and investment activities.
This credit facility aligns with Jabil’s strategic priorities discussed in previous earnings calls, where management emphasized the importance of maintaining liquidity to navigate economic uncertainties, tariff impacts, and supply chain challenges prevalent in the manufacturing sector. The facility’s flexible terms and multi-currency options position Jabil well to capitalize on growth opportunities and manage risks associated with global economic fluctuations.
In conclusion, Jabil’s new revolving credit facility represents a robust financial instrument that enhances the company’s capital structure, supports ongoing operational needs, and provides a foundation for future growth. Investors and stakeholders can view this development as a positive indicator of Jabil’s financial health and strategic foresight.
For detailed information, refer to the original SEC filing: Jabil Inc. 8-K Report June 18 2025.
Tags: JBL, Jabil Inc, FY 2024, revolving credit facility, manufacturing finance, corporate liquidity