Diodes lifts credit agreement by $200 million for Pericom purchase

By Wendy Van Sickle

Columbus, Ohio, Sept. 3 – Diodes Inc. expanded its existing credit facility by $200 million, which it will use to partly fund its acquisition of Pericom Semiconductor Corp., according to a press release.

On Monday, the company amended its credit agreement dated Jan. 8, 2013 with Bank of America, NA, as administrative agent to provide for the expansion, which lifted total capacity to $500 million, according to an 8-K filed with the Securities and Exchange Commission.

The agreement now provides for a $400 million revolving credit facility, which includes a $10 million swingline sublimit, a $10 million letter of credit sublimit and a $20 million alternative currency sublimit, and a $100 million term loan.

Bank of America Merrill Lynch acted as lead arranger for the credit facility increase.

The company may request up to an additional $200 million in revolving or term loans.

The facility matures on Jan. 8, 2018.

The facility has leverage-based interest ranging from Libor plus 150 basis point to 250 bps and a commitment fee from 25 bps to 40 bps.

Diodes plans to purchase Pericom for about $400 million. The transaction is expected to close in the fourth quarter of 2015.

Diodes is a Plano, Texas-based manufacturer and supplier of application-specific standard products within the broad discrete, logic and analog semiconductor markets.

Based in Milpitas, Calif., Pericom produces analog, digital and mixed-signal integrated circuits, power management solutions and quartz-based frequency control products.

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