Jabil Circuit, Inc. to Expand Current Operation in Saigon Hi-Tech Park
Jul 21 15
Jabil Circuit Inc. has signed a memorandum of understanding, or MoU, with the management board of Saigon Hi-Tech Park in Vietnam to expand its current operation in the park. Vietnamese governmental officials joined the Saigon Hi-Tech Park management board and Senior Jabil management at Jabil's new Blue Sky Center in San Jose, CA for the signing. The memorandum will allow for additional investments to expand Jabil's existing operations in Vietnam. The new facility, slated for groundbreaking in 2017, will focus on high-volume production of computing, storage, networking, telecommunications, automotive, digital home, mobility, point of sale, printing, industrial and energy sectors. By expanding in Vietnam Jabil gains important benefits including access to a large pool of industrious workers, mid-level engineers and managers. Vietnam also offers favorable labor costs in a robust economy that has grown at a rate of 6% for the last four quarters. A significant source of that growth is the high-tech manufacturing sector. Jabil began operations in Vietnam in April 2007 and has grown about 50% year-over-year for the last five years. Currently, Jabil Vietnam occupies 300,000 square feet of building space and employs 2,600 employees. The new facility will occupy up to one million square feet of land.
Jabil Circuit Inc. Announces Quarterly Dividend, Payable on September 1, 2015
Jul 16 15
Jabil Circuit Inc. announced that its Board of Directors has approved payment of a quarterly dividend of $0.08 per share to shareholders of record as of August 14, 2015.
The dividend is payable on September 1, 2015.
Jabil Circuit, Inc. Enters Amended and Restated Senior Unsecured Five Year Credit Agreement
Jul 10 15
On July 6, 2015, Jabil Circuit Inc. entered into an amended and restated senior unsecured five year credit agreement. The Agreement provides for a revolving credit facility in the initial amount of $1.5 billion, which may, subject to the lenders' discretion, potentially be increased up to $2.0 billion (the Revolving Credit Facility) and a $500.0 million five year delayed draw term loan facility (the Term Loan Facility and, together with the Revolving Credit Facility, the Credit Facilities). The Agreement was entered into among the Company, the initial lenders named therein, Citibank, N.A., as administrative agent, JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-syndication agents, and BNP Paribas, Mizuho Bank Ltd. and The Bank of Nova Scotia, as documentation agents. Most of the lenders under the Credit Facilities and their affiliates have various other relationships with the Company and its subsidiaries involving the provision of financial services, including cash management, loans, letter of credit and bank guarantee facilities, investment banking and trust services. The Company and some of its subsidiaries have entered into foreign exchange contracts and other derivative arrangements with certain of the lenders and their affiliates. In addition, most of the agents and lenders under the Credit Facilities held positions as agent and/or lender under the Company's Existing Credit Agreement. Two delayed draw term loans are available to be drawn until September 30, 2015 under the Term Loan Facility, and both of the Credit Facilities expire approximately five years from the date of closing, but in the case of the Revolving Credit Facility, subject to two one-year extension options (subject to the lenders' discretion). Interest and fees on Revolving Credit Facility and Term Loan Facility advances are based on the Company's non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor's Rating Service, Moody's Investor Service and Fitch Ratings all as more fully described in the Agreement. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000% to 0.650% above the base rate or 1.000% to 1.650% above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125% to 1.000% above the base rate or 1.125% to 2.000% above the Eurocurrency rate, in each case where the base rate represents the great of Citibank, N.A.'s base rate, 0.50% above the federal funds rate, and 1.0% above one-month LIBOR, but not less than zero, and the Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero, each as more fully described in the Agreement. Fees include a facility fee based on the revolving credit commitments of the lenders, a letter of credit fee based on the amount of outstanding letters of credit and a ticking fee based on the undrawn term loan commitments until the earlier of September 30, 2015 and the date of the second term loan draw. Based on the Company's current non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor's Rating Service, Moody's Investor Service and Fitch Ratings the current rates of interest for the Revolving Credit Facility are 0.175% above the base rate and 1.175% above the Eurocurrency rate and for the Term Loan Facility would be 0.375% above the base rate and 1.375% above the Eurocurrency rate (if any draws had been made to date under the Term Loan Facility). The Credit Facilities include various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers. As of the date of the Agreement, draws in the approximate amount of $790.0 million in revolving credit advances have been made and are outstanding under the Revolving Credit Facility and no draws of advances have been made and are outstanding under the Term Loan Facility.