> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Cognizant Swaps Old Credit Lines For $550 Million Term Loan And $1.85 Billion Revolver Due 2031
- URL: https://www.bullished.co/cognizant-swaps-old-credit-lines-for-550-million-term-loan-and-1-85-billion-revolver-due-423f015a/
- Published: 2026-10-06T20:51:46.000Z
- Updated: 2026-10-06T20:51:46.000Z
- Description: The new JPMorgan-led facilities are unsecured, and a leverage cap of 3.50:1.00 applies, according to an 8-K.
- Author: Matteo Parrino
- Tags: SEC Filings, CTSH, Industry: Technology

Cognizant signed a new credit agreement on Monday that pairs a [$550 million term loan](https://www.sec.gov/Archives/edgar/data/0001058290/000105829026000033/ctsh-20261005.htm?ref=bullished.co) with a $1.85 billion revolving credit line, according to an 8-K filed Tuesday. Both facilities are unsecured, and they replace the company's earlier credit facilities, which were terminated the same day.</mark>

## What the 8-K says

The borrowers are Cognizant Technology Solutions and its wholly owned subsidiary Cognizant Worldwide Limited. JPMorgan Chase Bank is administrative agent, and other financial institutions are party to the deal.

Term loan proceeds went mainly to repay the term loan under the old facilities. Cognizant also drew about $1.0 billion on the new revolver on Monday, and used that money mainly to repay the old revolving line.

The revolver is meant for general corporate purposes. Cognizant can borrow, repay and reborrow under it until it ends.

Both facilities mature on October 3, 2031\. The term loan has no scheduled payments in the first year. After that it amortizes in quarterly installments of $6.875 million, with the balance due at maturity.

## Pricing, covenant and extra capacity

Borrowers can choose either the Term Benchmark rate or the ABR rate, plus a margin. The margin starts at 0.875% on Term Benchmark and RFR loans and 0% on ABR loans.

The rate will follow the lower of two grids: one tied to the company's index debt rating, if it has public ratings from certain agencies, and one tied to its ratio of borrowed-money debt to Consolidated EBITDA.

The agreement carries customary covenants plus one financial test, checked each quarter. Leverage may not exceed 3.50:1.00, or 4.00:1.00 for up to four quarters after certain material acquisitions, if the borrower elects.

The borrowers may also ask to expand the facilities by up to $1.2 billion plus any voluntary prepayments, subject to conditions in the agreement.

## What to watch

The full credit agreement is attached as Exhibit 10.1\. It holds the covenant definitions and the rate-grid details that the 8-K summarizes.

Cognizant's shares closed at $57.22 on Tuesday, down 1.63%, but the filing itself gives no link between that move and the refinancing.

### Sources

- [8-K Filing — COGNIZANT TECHNOLOGY SOLUTIONS CORP (CTSH)](https://www.sec.gov/Archives/edgar/data/0001058290/000105829026000033/ctsh-20261005.htm?ref=bullished.co) — SEC EDGAR