Microchip may pay down credit facility with proceeds of new offering

By Toni Weeks

San Luis Obispo, Calif., Feb. 4 – Microchip Technology Inc. is eyeing reducing borrowings under its amended credit facility with some of the net proceeds of a new issue of convertible notes, according to a press release.

The company said it will first use a “substantial” portion of the proceeds to retire some of its outstanding convertible debt, with any remaining proceeds to pay down the credit facility.

The company announced on Wednesday that it will price $1 billion of convertible senior subordinated notes due 2025 in a Rule 144A offering. The deal will have a $150 million greenshoe.

Microchip is a Chandler, Ariz.-based provider of microcontroller, mixed-signal, analog and Flash-IP solutions.

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