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Kyndryl Holdings , Inc. (NYSE:KD), a global leader in technology services with a market capitalization of $7.85 billion, has entered into an amended and restated revolving credit agreement, extending its borrowing capacity and reinforcing its financial flexibility. The agreement, finalized on Thursday, allows the company to maintain a revolving credit line of up to $3.15 billion until March 14, 2030, building upon the previous agreement set to expire in 2026. According to InvestingPro data, the company has demonstrated strong market performance with a 52.78% return over the past year.
The new credit facility, arranged with JPMorgan Chase (NYSE:JPM) Bank, N.A. as the Administrative Agent alongside other lenders, mirrors the material terms of the original agreement established in October 2021 and amended in June 2023. This extension reflects Kyndryl’s ongoing relationship with its financial partners, who also provide various banking and advisory services to the company.
Kyndryl, headquartered in New York and operating under the SIC code for Computer Integrated Systems Design, is incorporated in Delaware with a fiscal year ending on March 31. The company’s common stock is publicly traded on the New York Stock Exchange under the ticker symbol KD.
This financial maneuver underscores Kyndryl’s strategic efforts to ensure long-term financial stability and operational capacity. The details of the amended credit agreement were disclosed in a recent SEC filing, which serves as the source of this report. The full terms of the agreement can be found in the Exhibit 10.1 of the filing.
Investors and stakeholders can view these developments as a sign of Kyndryl’s proactive management of its financial resources, ensuring the company’s ability to meet its future capital requirements.
In other recent news, Kyndryl Holdings Inc. reported mixed third-quarter results with earnings exceeding expectations but revenue falling short. The company posted adjusted earnings per share of $0.51, surpassing analyst estimates of $0.43, while revenue reached $3.74 billion, below the forecasted $3.83 billion. Despite the revenue miss, Kyndryl raised its fiscal year 2025 outlook for adjusted earnings and cash flow, expecting an adjusted pretax income of at least $475 million and adjusted free cash flow of around $350 million. Additionally, Scotiabank (TSX:BNS) raised its price target for Kyndryl shares to $45, citing a strong quarter and maintaining a Sector Outperform rating.
S&P Global Ratings revised its outlook for Kyndryl to positive from stable, acknowledging the company’s progress in transformation initiatives and contract signings. Kyndryl has also launched new secure access service edge (SASE) services in collaboration with Palo Alto Networks (NASDAQ:PANW) to enhance network security for enterprises. This initiative is part of Kyndryl’s ongoing efforts to modernize IT infrastructure and support a zero-trust security model. The company’s consulting division, Kyndryl Consult, has shown significant growth, contributing to revenue stabilization and supporting the company’s strategic goals.
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