Lattice Semiconductor outlines expected terms on $350 million loan

By Sara Rosenberg

New York, Feb. 9 – Lattice Semiconductor Corp. revealed that it expects its proposed $350 million six-year senior secured term loan to be priced at Libor plus 400 basis points with a 1% Libor floor, according to an SC TO-T filed with the Securities and Exchange Commission on Monday.

The filing also said that the term loan has 101 soft call protection for six months and amortization of 1% per annum.

The loan is expected to launch to investors sometime this month, a market source remarked.

Jefferies Finance LLC and HSBC Securities USA Inc. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Silicon Image Inc. in an all-cash tender offer of $7.30 per share, representing an equity value of about $600 million.

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

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.

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.

© 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.