Cypress Semiconductor sets term A and B spreads at Libor plus 375 bps

By Sara Rosenberg

New York, Feb. 14 – Cypress Semiconductor Corp. firmed pricing on its $95 million term loan A due March 12, 2020 and $438.75 million term loan B due July 5, 2021 at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the original issue discount talk for new commitments for the term loan B was changed to a range of 99.5 to 99.75 from just 99.5, the source said.

The term loan A still has no floor and a discount of 99.75, and the term loan B still has no Libor floor, a par issue price for rolled commitments and 101 soft call protection for six months.

The company’s 1,073,750,000 senior secured credit facility also includes a $540 million revolver due March 12, 2020 priced in line with talk at Libor plus 225 bps with no floor and an original issue discount of 99.9.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Barclays are the joint bookrunners on the deal.

Commitments/consents were scheduled to be due at 2 p.m. ET on Tuesday, the source added.

Proceeds will be used to amend the existing senior secured credit facility and reprice the term loan A due 2020 and term loan B due 2021.

As part of the transaction, the total leverage covenant is being amended to 4.25 times through Dec. 31, 2017, 4 times through June 30, 2018 and 3.75 times thereafter.

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

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