Microchip Technology amended its credit facility dated June 27, 2013 with JPMorgan Chase Bank. According to a related 8-K filing, the amended facility provides for a revolving loan of approximately $3.8 billion with a $250 million foreign currency sublimit, a $50 million letter of credit sublimit and a $25 million swingline loan sublimit.
The revolving loan facility consists of approximately $244.3 million of revolving loan commitments (that terminate on February 4, 2020) and approximately $3.6 billion of revolving loan commitments that terminate on May 18, 2023. The company may elect to borrow revolving loans under either tranche of revolving loan commitments. All or a portion of the proceeds of the revolving credit facility may be used to finance the company’s pending acquisition of Microsemi and its subsidiaries.
The proceeds of loans made under the revolving loan facility may also be used for working capital and general corporate purposes. Upon the closing of, the company had no revolving loans outstanding.
The revolving loans bear interest, at the company’s option, at, in the case of 2020 revolving loans, the base rate plus a spread of 0.25% to 1.25% or an adjusted LIBOR rate plus a spread of 1.25% to 2.25% and, in the case of 2023 revolving loans, the base rate plus a spread of 0.00% to 1.00% or an adjusted LIBOR rate plus a spread of 1.00% to 2.00%, in each case, with such spread being determined based on the consolidated senior leverage ratio for the preceding four fiscal quarter period.
The amended agreement permits the company and its subsidiaries to incur additional indebtedness in an aggregate principal amount of up to $5 billion in the form of one or more series of senior secured or unsecured notes and/or a senior secured term loan facility having terms substantially the same as those set forth in that certain commitment letter, dated as of March 1, 2018.
JPMorgan Chase, Wells Fargo Securities, Merrill Lynch, HSBC Securities, BMO Capital Markets, U.S. Bank, SunTrust Robinson Humphrey, MUFG Bank, Fifth Third Bank, Royal Bank Of Canada, DBS Bank, Mizuho Bank, BNP Paribas Securities and the Bank of Nova Scotia served as joint bookrunners and joint lead arrangers.