Tessera Holding entered into a $600 million credit agreement with Royal Bank of Canada as administrative agent and collateral agent. The credit agreement provides for a $600 million seven-year term B loan facility.

The obligations under the credit agreement are guaranteed by Tessera and certain other of Tessera Holding’s wholly-owned domestic subsidiaries. The obligations under the credit agreement are secured by a lien on substantially all of the assets of Tessera Holding and the guarantors pursuant to the security agreement dated December 1, 2016.

The interest rates applicable to loans outstanding are, until the delivery of financial statements for the first full fiscal quarter after December 1, 2016, equal to either a base rate plus a margin of 2.25% per annum or LIBOR plus a margin of 3.25% per annum and thereafter, the effective date margin or so long as the ratio of consolidated indebtedness of Tessera and its subsidiaries to consolidated EBITDA is equal to or less than 1.50 to 1.00, equal to either a base rate plus a margin of 2.00% per annum or LIBOR plus a margin of 3.00% per annum.

Commencing March 31, 2017, the term B loan facility will amortize in equal quarterly installments in aggregate quarterly amounts equal to 0.25% of the original principal amount of the term B loan facility, with the balance payable on the maturity date of the term B loan facility.