Fairchild announced that it has entered into a new $400 million revolving credit facility which replaces its existing revolver. Fairchild will use the proceeds from the refinancing to retire the old revolving credit facility, which was due to mature in May 2016.

Bank of America acted as administrative agent with Bank of America Merrill Lynch, HSBC Bank USA, Citizens Bank and Fifth Third Bank acting as joint lead arrangers and joint bookrunners.

Fairchild will initially draw approximately $200 million from the new facility, which will leave $200 million of undrawn capacity. The new facility matures
in September 2019 and continues to include a $300 million accordion feature. The facility is subject to leverage and interest coverage ratios and enables Fairchild to borrow at lower interest rates.

“Fairchild’s solid balance sheet and compelling business strategy resulted in a very positive response to the refinancing,” said Mark Frey, Fairchild’s executive vice president, CFO and treasurer. “The deal was two times oversubscribed with 14 banks participating including five new institutions. We expect this relatively low cost revolver structure to reduce our interest expense by more than $1 million annually, at current debt and EBITDA levels, while giving us a new five year maturity horizon. We believe maintaining a modest level of low cost debt is an important element of our overall capital structure.”

Fairchild manufactures a portfolio of low- to high-power solutions for the mobile, industrial, cloud, automotive, lighting and computing industries.