Jabil Inc. gets $3.2 billion line of credit after expansion announced

St. Petersburg technology giant Jabil took out a massive line of credit a day after publicly announcing a $500 million expansion.

The $3.2 billion five-year revolving credit facility was issued June 18 and announced in a U.S. Securities & Exchange Commission filing sent to investors Tuesday evening. The expansion was announced June 17.

The company did not say in the disclosure what the money is for and in an email Wednesday morning a Jabil spokesperson wrote that, “At this time, we don't have any additional details to share beyond what was in the 8K.”

The document does say that with this agreement it terminated one dated Jan. 22, 2020.

It is, of course, normal for companies to have large credit lines available to draw on for projects and, as for the timing, it may simply be a coincidence.

Jabil announced June 17 it is planning to invest about $500 million to support its artificial intelligence and cloud data center infrastructure.

The company says the multiyear investment is for a single facility to be built in the Southeast and that is in the final stages of site selection. The plan is to be fully operational by the midway point of next year.

In addition to the latest project, Jabil announced in September its plans for a new $238 million facility in India expected to bring 5,000 jobs.

Jabil is a multinational manufacturing, design and supply chain solutions company that makes parts for major companies.

Its revenue for the third quarter this year was up 15.7% to $7.8 billion when compared with the same period last year.