Microchip cancels 2018 revolver tranche, gets added 2020 commitments

By Marisa Wong

Morgantown, W.Va., Sept. 1 – Microchip Technology Inc. terminated one of the tranches of its revolving credit facility available until June 27, 2018 and entered into an agreement with lenders to increase the other tranche available until Feb. 4, 2020.

The company entered into a master increasing lender supplement on Friday for $165.7 million of additional commitments available until Feb. 4, 2020, bringing the aggregate 2020 tranche commitments to $2,727,000,000, according to an 8-K filing with the Securities and Exchange Commission.

Before entering into the supplement, the 2018 tranche commitments and 2020 tranche commitments totaled $2,774,000,000.

The new 2020 tranche commitments were obtained under provisions of the credit agreement that allow the company to request additional commitments from existing or new lenders as long as its senior leverage ratio is less than or equal to 2.50 to 1.00.

JPMorgan Chase Bank, NA is administrative agent for the credit agreement.

Microchip Technology is a Chandler, Ariz.-based manufacturer of microcontroller, memory and analog semiconductors.

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