Qorvo signs $325 million five-year revolver with BofA

By William Gullotti

Buffalo, N.Y., April 26 – Qorvo, Inc. entered into a $325 million five-year unsecured senior credit facility with Bank of America, NA as administrative agent on April 23, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver includes a $25 million sublimit for standby letters of credit and a $10 million sublimit for swingline loans. Subject to securing additional commitments from existing or new lenders, the borrower may request to increase the facility by an additional $325 million.

Borrowings presently bear interest at SOFR plus a margin ranging from 100 basis points to 150 bps, determined by the company’s consolidated leverage ratio. There is also a commitment fee on the undrawn portion of the revolver, presently determined the same way, that ranges from 12.5 bps to 22.5 bps.

The margin and fee were set at 125 bps and 15 bps, respectively, at closing.

The borrower may irrevocably elect to change the pricing grid for the margin and commitment fee to one based upon its debt ratings instead of its leverage ratio. In such a case, the margin will range from 100 bps to 175 bps, and the fee will range from 12.5 bps to 27.5 bps.

The company must maintain a consolidated leverage ratio of no more than 3.5 to 1.0 at the end of any fiscal quarter, which may be increased twice to 4.0 to 1.0 for four consecutive fiscal quarters in connection with acquisitions in excess of $300 million.

In addition to serving as administrative agent, Bank of America is also the swingline lender and letter-of-credit issuer.

BofA Securities, Inc., Citibank, NA and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

BMO Bank, NA, Citibank, NA, Morgan Stanley Senior Funding Inc., Toronto-Dominion Bank, New York Branch and Wells Fargo Bank, NA are the co-syndication agents.

Qorvo provides core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.

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