Lattice Semiconductor plans $350 million term loan for Silicon buy

By Sara Rosenberg

New York, Jan. 27 – Lattice Semiconductor Corp. has received a commitment for a $350 million term loan to help fund its acquisition of Silicon Image Inc., company officials said in a conference call on Tuesday.

Jefferies Finance LLC is the lead on the deal.

Other funds for the transaction will come from about $250 million of cash on the balance sheet, officials said.

Under the agreement, Silicon Image is being bought in an all-cash tender offer of $7.30 per share, representing an equity value of about $600 million.

Closing is expected by the end of March, subject to customary conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the tender of a majority of Silicon Image’s common stock.

Pro forma net leverage will be about 1.5 times, officials added in the call.

Lattice Semiconductor is a Portland, Ore.-based provider of programmable connectivity solutions. Silicon Image is a Sunnyvale, Calif.-based provider of wired and wireless connectivity solutions.

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