Cirrus Logic gets $300 million amended, restated revolver due 2021

By Angela McDaniels

Tacoma, Wash., July 15 – Cirrus Logic, Inc. entered into an amended and restated credit agreement on Tuesday that provides for a $300 million senior secured revolving credit facility due July 12, 2021, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is Libor plus 150 basis points, and the initial commitment fee is 20 bps.

The margin over Libor ranges from 125 bps to 200 bps, and the commitment fee ranges from 20 bps to 30 bps. Both are based on the company’s leverage ratio.

Wells Fargo Securities LLC is the lead arranger and the bookrunner. Wells Fargo Bank, NA is the administrative agent, and Bank of America, NA is the syndication agent.

The revolver is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries and is secured by substantially all of the assets of Cirrus Logic and the guarantors.

The revolver contains financial covenants that require the company to cap its ratio of consolidated funded debt to consolidated EBITDA at 3.00 to 1.00 and to maintain a ratio of consolidated EBITDA to consolidated fixed charges of at least 1.25 to 1.00.

The revolver was used to refinance in full Cirrus Logic’s existing credit agreement dated Aug. 29, 2014 and may also be used for general corporate purposes.

The old credit agreement provided for a $250 million revolver due Aug. 29, 2017 with an interest rate of Libor plus 150 bps to 200 bps, a commitment fee of 25 bps to 35 bps and a financial covenant that required the company to cap its ratio of consolidated funded debt to consolidated EBITDA at 2.00 to 1.00.

Austin, Texas-based Cirrus Logic makes integrated circuits for audio and voice signal processing applications.

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