Cypress Semiconductor increases revolver to $700 million, extends it

By Angela McDaniels

Tacoma, Wash., Aug. 1 – Cypress Semiconductor Corp. amended its credit agreement on Wednesday to increase the revolving commitments to $700 million from $540 million, extend the termination date of the revolving commitments to Jan. 31, 2021 from March 12, 2020, give the company the option to extend the termination date of the revolving commitments to July 31, 2021 and reduce the applicable margin for the revolving loans, according to an 8-K filing with the Securities and Exchange Commission.

After giving effect to the amendment, the revolving loans will bear interest at Libor plus a margin that ranges from 125 basis points to 175 bps depending on the company’s total leverage ratio.

In connection with the amendment, the company repaid in full about $448 million principal amount of term loans outstanding under the credit agreement.

As of the closing date of the amendment and following the repayment, $447 million principal amount of revolving loans were outstanding under the credit agreement.

MUFG Bank, Ltd. is the successor administrative agent, and Morgan Stanley Senior Funding, Inc. is the outgoing administrative agent.

The semiconductor company is based in San Jose, Calif.

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