Veeco Instruments entered into a senior secured revolving credit facility that enables the company to borrow up to $150 million over a five-year term that expires in December 2026.
HSBC Bank is acting as administrative agent and collateral agent for the facility. In addition, HSBC Bank, Barclays Bank, Santander Bank and Citibank served as joint lead arrangers and joint bookrunners on the facility, with Silicon Valley Bank serving as an additional lender.
“We are pleased to secure a $150 million facility at attractive interest rates,” John Kiernan, CFO of Veeco Instruments, said. “The facility provides the company with enhanced liquidity and financial flexibility to carry out our corporate objectives.”
Veeco Instruments has no immediate plans to draw down on the facility. Interest expense under the facility is variable based on the company’s secured net leverage ratio and is expected to bear interest based on SOFR plus a range of 150 to 225 basis points, if drawn. There is a yearly commitment fee of 25 to 35 basis points based on the company’s secured net leverage ratio and charged on the unused portion of the facility.
Morrison & Foerster acted as counsel to Veeco Instruments for this transaction.