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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Ttm Technologies Inc · 10-Q · Q2 FY2026 · Period ended Jun 29, 2026
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Foreign Currency Exchange Rate Risks
In connection with the proposed STG acquisition, we expect to become exposed to additional foreign currency risk from the CHF-denominated purchase price and interest related to the planned drawdown under the RCF to finance the proposed STG acquisition, which is expected to close in the third quarter of 2026, subject to the satisfaction of regulatory approvals and other customary closing conditions.
In an effort to economically mitigate these risks, we entered into a deal-contingent forward-starting, fixed-for-fixed USD/CHF cross-currency swap with a major financial institution. As of June 29, 2026, the swap had a net fair value liability of $14.0 million. The terms of the deal-contingent swap were as follows:
As of June 29, 2026
Remaining 2026 2027 2028 2029 2030 Thereafter
(In thousands, except interest rates)
USD principal (1) Pay USD 381,083 — — — — Receive USD 381,083
CHF principal (1) Receive CHF 306,200 — — — — Pay CHF 306,200
USD interest (2) — Receive 6.00% Receive 6.00% Receive 6.00% Receive 6.00% Receive 6.00%
CHF interest (2) — Pay 3.025% Pay 3.025% Pay 3.025% Pay 3.025% Pay 3.025%
(1)Effective September 30, 2026 and matures on September 30, 2033.
(2)Settlements commence March 31, 2027 through maturity, settled semiannually each March 31 and September 30.
See Part I, Item 1, Note 1, Nature of Operations and Basis of Presentation, of the Notes to Consolidated Condensed Financial Statements in this Report for further information.
Interest Rate Risks
As of June 29, 2026, 76.5% of our total debt was based on fixed rates. Based on our borrowings as of June 29, 2026, an assumed 100 basis point change in variable rates would cause our annual interest cost to change by $2.3 million.
Debt Instruments
The fiscal calendar maturities of our debt instruments for the next five years and thereafter were as follows:
As of June 29, 2026
Remaining 2026 2027 2028 2029 2030 Thereafter Total Fair Value Weighted Average Interest Rate
(In thousands, except interest rates)
Variable Rate (1) $ 2,000 $ 5,000 $ 3,000 $ 4,000 $ 386,000 $ 80,000 $ 480,000 $ 481,000 5.36 %
Fixed Rate — — — 500,000 — — 500,000 481,760 4.00
Total $ 2,000 $ 5,000 $ 3,000 $ 504,000 $ 386,000 $ 80,000 $ 980,000 $ 962,760
(1)Interest rate swap effectively fixed $250,000 of variable rate debt.
There have been no other material changes to our risks as previously disclosed in Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for the fiscal year ended December 29, 2025.
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