v3.26.3
Borrowings
 3 Months Ended
Sep. 25, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings 
The Company’s total borrowings, including current and non-current portions of long-term borrowings, consisted of the following:
(in thousands)
RateConditionsMaturity
As of
September 25, 2026
As of
June 26, 2026
Long-term borrowings, current portion, net:
Long-term borrowings, current portion$11,211 $— 
Long-term borrowings, current portion, net$11,211 $— 
Long-term borrowings, non-current portion, net:
Fixed rate 2.45% per annum
Repayable in
quarterly installments		September 2031$63,528 $— 
Long-term borrowings, non-current portion, net$63,528 $— 
The movements of long-term borrowings for the three months ended September 25, 2026 and September 26, 2025 were as follows:
Three Months Ended
(in thousands)September 25,
2026		September 26,
2025
Opening balance$— $— 
Borrowings during the period74,828 — 
Repayments during the period— — 
Unrealized (gains) losses(89)— 
Closing balance$74,739 $— 
As of September 25, 2026, future maturities of long-term borrowings during each fiscal year were as follows:
(in thousands)
2027 (remaining nine months)
$11,211 
202814,948 
202914,948 
203014,948 
203114,948 
Thereafter3,736 
Total$74,739 
Credit facility agreements:
2019 Credit Facility Agreement
On August 20, 2019, Fabrinet Thailand (the “Borrower”) and Bank of Ayudhya Public Company Limited (the “Bank”) entered into a credit facility agreement (the “2019 Credit Facility Agreement”), which provides for a facility of Thai baht 110.0 million (approximately $3.6 million based on the applicable exchange rate as of September 27, 2019) and $160.9 million that may be used for, among other things, an overdraft facility, short-term loans against promissory notes, a letter of guarantee facility, a term loan facility and foreign exchange facilities. The Bank may approve any request for extension of credit under the 2019 Credit Facility Agreement and may increase or decrease any facility amount in its sole discretion.
On August 17, 2026, the Borrower and the Bank amended the 2019 Credit Facility Agreement to increase the facility to Thai baht 2.61 billion (approximately $78.3 million based on the applicable exchange rate as of August 17, 2026) and $100.0 million. The credit facility will mature on August 20, 2044.
In connection with the amendment, the Borrower and the Bank entered into a term loan agreement (the “Term Loan Agreement”) in the original principal amount of Thai baht 2.50 billion (not exceeding $75.0 million). The proceeds from the term loan, together with cash on hand, were used to support the Company's capital expenditures.
The term loan bears interest at a rate of 2.45% and was drawn down on August 19, 2026. The term loan is repayable in quarterly installments and matures on September 30, 2031. During the three months ended September 25, 2026, the Company recognized $0.2 million of interest expense related to the term loan.
Any borrowings under the 2019 Credit Facility Agreement, including those borrowings under the Term Loan Agreement, are guaranteed by Fabrinet.
The Term Loan Agreement contains affirmative and negative covenants applicable to the Borrower, including delivery of financial statements and other information, compliance with laws, and restrictions on granting security interests or liens on its assets, disposing of its assets, incurring indebtedness and making acquisitions. The Company is also required to maintain a debt service coverage ratio of at least 2.00 times and an interest-bearing debt ratio of less than or equal to 1.0 time.
The events of default under the Term Loan Agreement include failure to timely pay amounts due under the Term Loan Agreement or the related finance documents, failure to comply with the covenants under the Term Loan Agreement or the related finance documents, cross default with other indebtedness of the Borrower, events of bankruptcy or insolvency in respect of the Borrower, and the occurrence of any event or series of events that in the opinion of the Bank has or is reasonably likely to have a material adverse effect.
As of September 25, 2026, Thai baht 2.50 billion (approximately $74.7 million) was outstanding under the term loan.
2023 Credit Facility Agreement
On March 9, 2023, Fabrinet Thailand and the Parent Company (collectively, the “Borrowers”) and the Bank entered into a credit facility agreement (the “2023 Credit Facility Agreement”), which provided a facility of $55.0 million.
During the three months ended December 27, 2024, the Borrowers and the Bank amended the 2023 Credit Facility Agreement to reduce the facility to $30.0 million, which may be used for export bill discount. The credit facility will mature on March 9, 2043.
As of September 25, 2026, there was no amount outstanding under the 2023 Credit Facility Agreement.
Under the 2023 Credit Facility Agreement, the Borrowers are required to maintain a debt-to-equity ratio of less than or equal to 1.5 times for Fabrinet Thailand and 1.0 times for the Parent Company.
As of September 25, 2026, the Borrowers were in compliance with all of their financial covenants under the 2023 Credit Facility Agreement.