Marvell gets $900 million term loan, $850 million bridge commitment

By Sara Rosenberg

New York, Nov. 20 – Marvell Technology Group Ltd. has received a commitment for a $900 million term loan and an $850 million bridge loan to help fund its acquisition of Cavium Inc., according to a 425 filed with the Securities and Exchange Commission on Monday.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are the lead banks on the debt.

The company also plans on getting a $500 million revolving credit facility.

Under the agreement, Cavium is being bought for $40.00 per share in cash and 2.1757 Marvell common shares for each Cavium share. This represents a transaction value of about $6 billion.

Gross debt is expected to be 1.5 times, and net debt is expected to be 1 time.

Closing is expected in mid-2018, subject to regulatory approval, Cavium shareholder approval, the approval by Marvell shareholders of the issuance of Marvell common shares in the transaction and other customary conditions.

Marvell is a Hamilton, Bermuda-based provider of storage, networking and connectivity solutions. Cavium is a San Jose, Calif.-based provider of infrastructure solutions for compute, security, storage, switching, connectivity and baseband processing.

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