Concentrix Corporation Announces \$600 Million Offering of 6.500% Senior Notes Due 2029

Key Highlights from the Latest SEC Filing

• Issuer: Concentrix Corporation (NASDAQ: CNXC)
• Type of Security: \$600,000,000 aggregate principal amount of 6.500% Senior Notes due 2029
• Date of Issuance: February 24, 2026
• Interest Rate: 6.500% per annum, subject to adjustment
• Interest Payment Dates: Semi-annual payments on March 1 and September 1, commencing September 1, 2026
• Stated Maturity: March 1, 2029
• Trading Symbol: CNXC
• Exchange: NASDAQ

Details of the Offering

Concentrix Corporation has announced the successful issuance and sale of \$600 million in aggregate principal amount of 6.500% Senior Notes due 2029 (the “Notes”). The Notes have been issued under an indenture and a fourth supplemental indenture, and the proceeds are expected to be used for general corporate purposes.

Interest Rate Adjustment Mechanism

A highly notable feature for investors is the interest rate adjustment mechanism linked to the company’s credit ratings. The 6.500% coupon on the Notes may be increased or decreased based on any downgrade or upgrade of the debt rating by Moody’s, S&P, or Fitch, or if a nationally recognized substitute rating agency is appointed and changes the rating. In total, the interest rate can be adjusted by up to 2.000% above the base rate of 6.500% per annum, but not reduced below the base rate.

The adjustment tables are as follows:

• For Moody’s: Downgrades to “Ba1” increase the rate by 0.250%, “Ba2” by 0.500%, “B1 or below” by 1.000%.
• For S&P: Downgrades to “BB+” increase the rate by 0.250%, “BB” by 0.500%, “BB-” by 0.750%, “B+ or below” by 1.000%.
• For Fitch: Downgrades to “BB+” increase the rate by 0.250%, “BB” by 0.500%, “BB-” by 0.750%, “B+ or below” by 1.000%.

If only one rating is available, the rate adjustment will be doubled for that rating agency. The company must notify the trustee and noteholders within five business days of any change in interest rate due to a rating event.

Ranking and Security

The Notes are unsecured and rank equally with all of Concentrix Corporation’s other senior unsecured and unsubordinated indebtedness.

Optional Redemption and Change of Control

The Notes may be optionally redeemed by the company under certain conditions, which may include the successful completion of a debt or equity offering, a change of control, or other corporate events. Redemption notices can be made contingent on such events.

Form and Denomination

The Notes are issued in minimum denominations of \$2,000 and integral multiples of \$1,000 in excess thereof. Transfer and exchange of beneficial interests will be managed through The Depository Trust Company (DTC), Clearstream, and Euroclear systems, according to standard procedures.

Shareholder Considerations and Price Sensitivity

• Large Debt Issuance: The \$600 million offering increases Concentrix’s leverage, which may impact financial ratios and could be viewed as positive or negative by the market, depending on the company’s use of proceeds and overall credit profile.
• Interest Rate Tied to Ratings: The adjustment mechanism means that any future downgrade of Concentrix’s credit rating could materially increase its interest expense, potentially impacting earnings and cash flows. Conversely, a rating upgrade could lower interest costs.
• Potential Price Sensitivity: The ability for the Notes’ coupon to increase by up to 2% in the event of multiple downgrades is a key risk factor. This provision makes Concentrix’s cost of debt more sensitive to changes in credit ratings than typical fixed-coupon notes.
• Issuer’s Right to Redeem: The company’s right to redeem the Notes on certain conditions may influence market perception, especially if exercised in connection with strategic transactions or material events.

Other Important Information

• The issuance does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction where such an offer or solicitation would be unlawful.
• The Notes are governed by New York law and the General Corporation Law of the State of Delaware.
• The legal opinion on the issuance is provided by Pillsbury Winthrop Shaw Pittman LLP.

Conclusion

This new debt issuance is a significant financial event for Concentrix Corporation, potentially affecting shareholder value and the company’s capital structure. Investors should closely monitor the company’s credit ratings and future announcements related to the use of proceeds, as these factors could influence both the company’s cost of capital and its stock price.

Disclaimer: The information above is provided for informational purposes only and does not constitute investment advice. Investors should review the full official SEC filing and consult with financial advisors before making investment decisions. The article is based on publicly available regulatory filings as of the date indicated and may not reflect subsequent developments.

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