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Get filing alertsGen Digital refinances $2.7B in debt, extends maturity to 2031 with new credit facility
Filed March 27, 2026 · Period ending March 27, 2026 · ~1 min read
Key Changes
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high
Company borrowed $2.741 billion in new term loans to fully repay existing debt, extending maturity to March 2031. Interest rates float based on SOFR or base rate plus margins tied to credit rating or leverage ratio.
Item 1.01 verify on EDGAR → -
high
Extended $1.5 billion revolving credit facility maturity to 2031, but extension includes springing maturity clause that could accelerate repayment if company fails minimum liquidity test.
Item 1.01 verify on EDGAR → -
medium
New term loans require 5% annual amortization ($137M yearly in mandatory principal payments), while revolving facility has no amortization until maturity.
Item 1.01 verify on EDGAR →
Summary
Gen Digital completed a significant debt refinancing on March 27, 2026, replacing its existing term loans with $2.741 billion in new Extended Term A Loans maturing in 2031. The company used proceeds from the new borrowing plus cash on hand to fully repay all outstanding Initial Tranche A Term Loans.
This marks the third amendment to the credit agreement originally established in September 2022, following prior modifications in 2024 and 2025. For retail investors, this refinancing extends the company's debt maturity runway by roughly five years, reducing near-term refinancing risk.
However, the springing maturity provision on the revolving facility introduces a potential acceleration trigger if liquidity falls below specified thresholds. The variable interest rate structure tied to credit ratings and leverage ratios means borrowing costs will fluctuate with both market rates and the company's financial performance. Watch Gen Digital's quarterly debt disclosures for actual interest rates paid and compliance with the liquidity covenant. The 5% annual amortization requirement means approximately $137 million in mandatory debt reduction each year, which will impact free cash flow available for dividends, buybacks, or acquisitions.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On March 27, 2026, Gen Digital Inc. (“Gen Digital” or the “Company”) entered into the Third Amendment to Amended and Restated Credit Agreement (the “Amendment”) with the guarantors party thereto, the lenders party thereto and Bank of America, N.A., as administrative agent, pursuant to which Gen Digital amended its existing Amended and Restated Credit Agreement, dated as of September 12, 2022 (as amended by the First Amendment to Amended and Restated Credit Agreement dated as of June 5, 2024 and the Second Amendment to Amended and Restated Credit Agreement dated as of April 16, 2025, the “Existing Credit Agreement”).
Gen Digital entered into a third amendment to its credit agreement with Bank of America as administrative agent. This modifies the company's existing credit facility that was originally established in September 2022 and previously amended twice in 2024 and 2025.
Added in current filing · verify on EDGAR →
(ii) extended the maturity date with respect to a portion of its Initial Tranche A Term Loans (as defined in the Existing Credit Agreement) to the Extended Maturity Date through the establishment of a new class of term loans (the “Extended Term A Loans”), (iii) incurred additional Extended Term A Loans, the proceeds of which, together with cash on hand, were used to repay in full all remaining Initial Tranche A Term Loans
Gen Digital created a new class of term loans called Extended Term A Loans with extended maturity. The company borrowed additional funds under this new facility and used those proceeds plus cash on hand to fully repay all existing Initial Tranche A Term Loans, effectively refinancing its term debt.
Added in current filing · verify on EDGAR →
The Company’s $2,741 million Extended Term A Loans will bear interest, at the Company’s option, at either a rate equal to (x) the bank’s base rate plus a margin based on the better of (i) the debt rating of the Company’s non-credit-enhanced, senior unsecured long-term debt (the “Debt Rating”) and (ii) the ratio of consolidated funded debt to consolidated EBITDA (the “Total Leverage Ratio”) of the Company or (y) the secured overnight financing rate plus a margin based on (i) the Debt Rating and (ii) the Total Leverage Ratio of the Company.
The new Extended Term A Loans total $2,741 million. Interest rates are variable at the company's option, based either on the bank's base rate or SOFR, with margins determined by the better of the company's debt rating or its leverage ratio. This pricing structure provides flexibility and potential cost savings if credit metrics improve.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 3, 2026 · How we verify