Altera gets $250 million revolver due 2017 at Libor plus 79.5 bps

By Angela McDaniels

Tacoma, Wash., July 3 - Altera Corp. entered into a new $250 million unsecured revolving line of credit due June 29, 2017 on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The revoler has a $250 million accordion feature and two one-year extension options.

There is a $50 million sublimit for letters of credit and a $20 million sublimit for swingline loans.

The initial interest rate is Libor plus 79.5 basis points, and the initial commitment fee is 8 bps. The spread over Libor can range from 69 bps to 135 bps and the commitment fee from 6 bps to 15 bps, both depending on the rating of the company's senior long-term debt.

The company may prepay the revolver in whole or in part at any time without premium or penalty.

Bank of America, NA is the administrative agent, swingline lender and letter of credit issuer. JPMorgan Chase Bank, NA and Morgan Stanley Senior Funding, Inc. are the syndication agents. Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding are the arrangers and bookrunners.

Proceeds may be used for working capital, capital expenditures and other corporate purposes, including stock repurchases.

The credit agreement requires the company to maintain a ratio of consolidated debt to capitalization of no more than 0.5 to 1.0 and at least $1 billion of liquidity.

Altera is a semiconductor company based in San Jose, Calif.

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