Microsemi launches $726 million term loan at Libor plus 275 bps

By Sara Rosenberg

New York, Jan. 30 - Microsemi Corp. launched its $726 million term loan on Wednesday with price talk of Libor plus 275 basis points with a 1% Libor floor and a par offer price, according to a market source.

The loan has 101 soft call protection for one year, the source said.

Proceeds will be used to reprice the existing term loan from Libor plus 300 bps with a 1% Libor floor.

In addition, the company is looking to amend the term loan to extend the maturity to seven years from Feb. 2, 2018 and remove financial covenants.

The company's revolver covenants will apply when the revolver is drawn, the source added.

Consents for the amendment are due on Tuesday and closing is targeted for Feb. 19.

Morgan Stanley Senior Funding Inc. is the lead arranger on the deal.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services.

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