Lattice Semiconductor enters five-year $250 million credit agreement

By Wendy Van Sickle

Columbus, Ohio, May 20 – Lattice Semiconductor Corp. entered into a secured credit agreement on Friday that provides for a $175 million term loan and a $75 million revolving credit agreement, both with five-year terms, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $20 million sublimit for letters of credit and a $10 million sublimit for swingline loans.

Lattice may request to increase revolving commitments or term loans by up to $100 million, so long as its leverage ratio would not exceed a certain threshold.

Borrowings bear interest at Libor plus a margin that ranges from 125 basis points to 200 bps, and the revolver’s commitment fee ranges from 20 bps to 30 bps, depending on leverage ratio. Initially the margin is 175 bps, and the commitment fee is 25 bps.

Term loans will be repaid in quarterly principal installments of $4,375,000 with the balance due at maturity.

Wells Fargo Securities, LLC, Citibank, NA and HSBC Bank USA, NA are the joint lead arrangers and bookrunners.

Citibank and HSBC are the co-syndication agents, and Wells Fargo Bank, NA is the administrative agent.

The credit agreement will mature on May 17, 2024.

Proceeds of loans made at closing, which included the full term loan and $31.5 million under the revolver, were used to repay all obligations under the company’s existing credit agreement dated March 10, 2015 with Jefferies Finance, LLC as administrative agent.

Lattice Semiconductor is a Portland, Ore.-based provider of programmable connectivity solutions.

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