According to an 8K filed with the SEC, Bank of America is serving as administrative agent, swing line lender and L/C issuer for a $2.5 billion sustainability-linked senior revolving credit facility for Analog Devices. In addition, according to the 8K, BofA Securities is serving as sustainability structuring agent, JPMorgan Chase is serving as syndication agent and Citibank and Morgan Stanley Senior Funding are serving as co-documentation agents. The 8K also revealed that BofA Securities, JPMorgan Chase, Citibank and Morgan Stanley Senior Funding are joint lead arrangers and joint bookrunners for the facility.
The $2.5 billion facility will replace Analog Devices’ existing $1.25 billion senior revolving credit facility and half of the new facility will become available upon the consummation of Analog Devices’ acquisition of Maxim Integrated Products.
According to a press release from the company, Analog Devices is one of the first U.S. semiconductor companies to issue a sustainability-linked revolving credit facility. Under the terms of the facility, Analog Devices will receive a pricing adjustment based on its performance against environmental criteria during the facility’s five-year term. Analog Devices’ progress will be measured on two key performance indicators within the company’s main manufacturing facilities, namely using renewable energy and reducing greenhouse gas emissions.
“At ADI, we are dedicated to playing a leading role across the semiconductor industry in enabling the transition towards a low-carbon economy. This sustainability-linked revolving credit facility will help mobilize our company’s resources in the fight against climate change,” Prashanth Mahendra-Rajah, CFO of Analog Devices, said. “Additionally, incorporating environmental impact metrics into the financing structure allows us to strive toward our sustainability and financial goals in tandem.”
The facility supports Analog Devices’ broader climate strategy, including its aim to achieve carbon neutrality by 2030 and net zero emissions by 2050.
