Daily News: December 3, 2013

SVB Agents Facility to Fund LTX-Credence/ECT Acquisitions

LTX-Credence announced completion of its acquisition of Multitest and Everett Charles Technologies (ECT). LTX-Credence recently entered into a $55 million senior secured credit facility with Everett Charles Technologies, Silicon Valley Bank as administrative agent, and several lenders to fund the purchase price.

LTX-Credence and Dover Printing & Identification, a subsidiary of Dover Corporation, completed the acquisition by LTX-Credence of the assets and stock exclusively and primarily related to the Multitest and ECT businesses, including the stock of Everett Charles Technologies, for a purchase price of $93.5 million, of which $73.5 million was paid in cash through a combination of existing cash-on-hand and bank debt, and $20 million was paid by the issuance of a promissory note by LTX-Credence to Dover. The purchase price is subject to customary adjustments.

The credit agreement provides for a senior secured credit facility in favor in the aggregate principal amount of up to $55 million. The facility consists of a term loan facility for $50 million advanced to LTX-Credence on November 27, 2013 and a revolving credit facility (including a letter of credit facility) for up to $5 million that is available from time to time for five years after the funding date.

Under the terms of the agreement, the facility may be increased by an aggregate amount not to exceed $20 million through an additional facility on a pari passu basis with the term loan, subject to specified condition. All obligations under the facility are secured by a first priority security interest in substantially all of the borrowers’ existing and future assets, including a pledge of the stock or other equity interests of the borrowers’ domestic subsidiaries and of any first-tier foreign subsidiaries, subject to specified conditions.

The combination of LTX-Credence, Multitest and ECT provides LTX-Credence the opportunity to serve a greater share of the semiconductor test cell market, while increasing access to the electronics manufacturing industry.

LTX-Credence is a global provider of ATE solutions.

Multitest is a global manufacturers of test equipment for semiconductor integrated circuits.

Everett Charles Technologies develops advanced technology board test products, holding over 100 patents.