Cypress Semiconductor amended its credit agreement with a group of lenders led by Morgan Stanley Senior Funding, as administrative agent and collateral agent, and Morgan Stanley Bank as issuing bank.

The credit agreement provided $540 million in revolving commitments and term loans in the aggregate original principal amount of $542.25 million.

According to a related 8-K filing, the amendment will reduce the applicable margin for the term loans and the revolving loans. It will also adjust the interest rate of the term loans to, at the option of the company, a base rate plus an applicable margin of 1.25% or the Eurodollar rate plus an applicable margin of 2.25%; and adjust the interest rate of the revolving loans to a base rate plus an applicable margin of either 0.75% or 1.00% or the Eurodollar rate plus an applicable margin of 1.75% or 2.00%, depending on the company’s secured leverage ratio

Additionally, the amendment removed the fixed charge coverage ratio financial covenants and for the 2016 term loans, removed the total leverage ratio covenant, changed the required amortization payments to 1% per annum and waived the excess cash flow mandatory repayment for FY 2017.

Cypress Semiconductor delivers solutions from automotive, industrial and networking platforms to interactive consumer and mobile devices.