Agilent Semiconductor outlines structure on $975 million credit facility

By Sara Rosenberg

New York, Nov. 2 - Agilent Semiconductor Products Group outlined the structure of and price talk on its $975 million credit facility as the deal was launched via a bank meeting at 11:30 a.m. ET Wednesday.

Citigroup and Lehman are the lead banks on the credit facility, with Citi the left lead.

The facility consists of a $250 million six-year revolver talked at Libor plus 250 basis points, a $475 million funded seven-year term loan B talked at Libor plus 250 bps and a $250 million delayed-draw term loan B talked at Libor plus 250 bps with a 100 bps undrawn fee, the source said.

The delayed-draw term loan B is available until April 2006, with a final seven-year maturity.

Proceeds from the revolver, funded term loan B, $1 billion in senior and subordinated notes, and equity will be used to fund the acquisition of Agilent Semiconductor by Kohlberg Kravis Roberts & Co. and Silver Lake Partners from Agilent Technologies Inc. for $2.66 billion.

Proceeds from the delayed-draw term loan B will be distributed to the equity holders based on certain conditions, thus the full $250 million may not be fully drawn.

The company does plan to do some deleveraging rather quickly. After the LBO is completed, Agilent Semiconductor will sell off its storage semiconductor business to PMC-Sierra Inc. for about $425 million cash. Most of the proceeds from the sale of this business will be used to repay debt under the new term loan B, the source added.

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