In addition, Citibank, Regions Bank, Comerica Bank, Silicon Valley Bank, HSBC Bank USA and Cadence Bank are participating in the bank syndicate. The new facility makes available up to $520 million in a term loan and provides a $150 million revolving credit line. It will be funded by the bank syndicate.
“Bank of America was the lead in our previous facility and continued to extend their support in this new facility along with BBVA Securities and PNC Capital Markets,” Dr. Keh-Shew Lu, chairman, president and CEO of Diodes, said. “The ongoing dedication by these lead banks as well as the rest of the banking group during these challenging economic times is a testament to Diodes strong financial performance and cash generation as well as the partnerships we have established.”
Diodes intends to use this new credit facility to refinance existing debt, ensure access to cash at a competitive rate, and to prepare financing for the acquisition of Lite-On Semiconductor (LSC) that is expected to close in the second half of 2020.
The term loan facility includes a delayed drawdown period to contemplate the LSC acquisition closing process. The interest rate on the facility is floating with an initial rate based on LIBOR plus 2% through February 2021, with a LIBOR floor of 0.75%.
“We are very pleased to enter into this new financing agreement, which represents an important step in preparing for the planned acquisition of LSC in the second half of the year,” Brett Whitmire, CFO of Diodes, said. “The strong support and commitment we have received from the banking group has enabled us to successfully put this new credit facility in place.”
Diodes delivers semiconductor products to companies in the consumer electronics, computing, communications, industrial and automotive markets.