Diodes Incorporated secured a five-year $300 million revolving senior credit facility. The facility bears interest at LIBOR plus 1.5% to 2.25% on the drawn amount and also includes an option to increase the size by up to $200 million subject to securing additional lender commitments.
Diodes is permitted to borrow against the facility for the purposes of refinancing certain existing debt, supporting working capital and capital expenditures, as well as financing acquisitions. The company intends to draw down approximately $200 million, primarily to refinance its current revolver and term debt of $40 million and to finance the recently announced acquisition of BCD Semiconductor Manufacturing Limited.
Bank of America acted as administrative agent and Merrill Lynch, Pierce, Fenner & Smith served as sole lead arranger and sole bookrunner. Other participating banks included Citibank, Compass Bank, HSBC Bank USA, Regions Bank, Silicon Valley Bank, Capital One Bank, Comerica Bank and Union Bank.
Dr. Keh-Shew Lu, president and CEO of Diodes, stated, “We are pleased to have secured this revolving credit facility on favorable terms from a prominent group of lenders. In addition to financing our proposed acquisition of BCD Semiconductor, the facility also provides the company additional flexibility as we continue to execute on our growth initiatives.”
Plano, TX-based Diodes is a manufacturer and supplier of high-quality application specific standard products within the broad discrete, logic and analog semiconductor markets.