Daily News: June 27, 2012

Morgan Stanley Leads $430 Million Revolver for Cypress

Cypress Semiconductor Corp. announced that it has entered into a five-year senior secured revolving credit facility with a group of lenders led by Morgan Stanley Senior Funding as administrative agent and collateral agent.

The facility enables the company to borrow up to $430 million on a revolving basis. The credit facility bears interest at LIBOR plus 2.25 percent on the drawn amount. There is a commitment fee payable of 0.375% per annum on any undrawn amounts. The credit facility contains customary affirmative, negative and financial covenants for similarly rated companies.

The company expects to draw down a total of $153 million immediately and is permitted to use the borrowings for working capital, acquisitions, stock repurchases and other general corporate purposes.

“We are pleased to secure this revolving credit facility at attractive interest rates from a core group of lenders,” said Brad Buss, EVP of Finance and CFO for Cypress. “The facility enhances Cypress’s credit profile and provides us further financial flexibility to support our long-term corporate objectives.”

Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value.