Lattice Semiconductor sets Feb. 18 launch for $350 million term loan

By Sara Rosenberg

New York, Feb. 11 – Lattice Semiconductor Corp. scheduled a bank meeting for Feb. 18 to launch its $350 million six-year senior secured covenant-light term loan, according to a market source.

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

Official price talk on the loan is not yet available.

However, a recent filing with the Securities and Exchange Commission said the loan is expected to be priced at Libor plus 400 basis points with a 1% Libor floor and have 101 soft call protection for six months.

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 1.4 times, the source added.

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.