Lattice Semiconductor launches $350 million loan at Libor plus 425 bps

By Sara Rosenberg

New York, Feb. 18 – Lattice Semiconductor Corp. launched on Wednesday its $350 million six-year senior secured covenant-light term loan with price talk of Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

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

Commitments are due on March 4, the source added.

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.

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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