Micron Technology increases term loan B size to $750 million

By Sara Rosenberg

New York, April 14 – Micron Technology Inc. upsized its six-year senior secured covenant-light term loan B to $750 million from $500 million, according to a market source.

Price talk on the term loan is Libor plus 600 basis points to 625 bps with a 0.75% Libor floor and an original issue discount of 98, and the debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., HSBC Holdings plc and J.P. Morgan Securities LLC are the joint lead arrangers and bookrunners on the deal.

Commitments are due at noon ET on Friday, accelerated from Wednesday, the source said.

Proceeds will be used for general corporate purposes, including working capital and capital expenditures, and to pay related fees and expenses.

Closing is subject to, among other things, successful syndication, negotiation, execution and delivery of definitive loan documentation and various customary conditions.

In addition to the term loan B, the company is issuing $1.25 billion in senior secured notes, upsized from $1 billion.

The funds raised from the term loan and bond upsizings will also be used for general corporate purposes.

Micron is a Boise, Idaho-based semiconductor company.

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