Cypress Semiconductor resizes term B to $450 million, adjusts OID

By Sara Rosenberg

New York, June 3 – Cypress Semiconductor Corp. lifted its five-year term loan B to $450 million from a revised amount of $400 million, but the loan is still smaller than its original launch size of $700 million, according to a market source.

Also, the original issue discount on the term loan B was changed to 98.5 from revised talk of 98 and initial talk of 98 to 99, and a 25 basis points step-down in pricing was added at less than 3 times net total leverage, the source said.

Pricing on the loan is Libor plus 550 bps with a 1% Libor floor, and the debt has 101 soft call protection for one year.

Earlier in syndication, the spread on the term loan B was increased from Libor plus 500 bps, the call protection was extended from six months, the maturity was shortened from seven years and amortization was sweetened to 5% in years one, two and three and 7.5% in years four and five, from 1% per annum.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Broadcom Corp.’s wireless internet of things business and related assets in an all-cash transaction valued at $550 million.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.