Micron Technology draws down on revolver as ‘precautionary measure’

By Sarah Lizee

Olympia, Wash., March 13 – Micron Technology, Inc. drew down the entire $2.5 billion available under its revolver on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The company said it increased borrowings under the revolver as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak.

The drawdown proceeds are currently being held on the company’s balance sheet and may be used for general corporate purposes.

The revolver is part of a credit agreement that also provides for a $1.25 billion term loan.

Borrowings under the revolver are scheduled to mature on July 3, 2023, and the company may repay amounts borrowed any time without penalty.

Borrowings will bear interest at Libor plus 125 basis points to 200 bps, based on ratings. Interest is currently Libor plus 125 bps.

Micron is a Boise, Idaho-based semiconductor company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.