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Microchip lifts term loan to $3 billion, firms at Libor plus 200 bps
By Sara Rosenberg
New York, May 23 – Microchip Technology Inc. upsized its seven-year term loan B to $3 billion from $2 billion and set pricing at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.
Furthermore, the issue price on the term loan was tightened to par from 99.75, the source said.
As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.
J.P. Morgan Securities LLC is the lead bank on the deal.
Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.
Proceeds will be used to help fund the acquisition of Microsemi Corp. for $68.78 per share in cash. The acquisition price represents a total equity value of about $8.35 billion and a total enterprise value of about $10.15 billion, after accounting for Microsemi’s cash and investments, net of debt, on its balance sheet at Dec. 31, 2017.
Microchip is a Chandler, Ariz.-based manufacturer of microcontroller, memory and analog semiconductors. Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.
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