Microsemi firms offer price on $150 million term loan at par

By Sara Rosenberg

New York, Oct. 31 - Microsemi Corp. finalized the offer price on its $150 million term loan B due Feb. 19, 2020 at par, the low end of the 99½ to par talk, according to a market source.

Also, the Libor floor on the loan was reduced to 0.75% from 1% and there is now 101 soft call protection for six months instead of through February 2014, the source said.

Pricing on the term loan was left unchanged at Libor plus 275 basis points.

The term loan will now be a separate tranche, as opposed to being fungible with the company's existing term loan B that is priced at Libor plus 275 bps with a 1% Libor floor, the source added.

Recommitments were due at 10 a.m. ET on Thursday.

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

Proceeds will be used to partially fund the acquisition of the Symmetricom Inc., a San Jose, Calif.-based company that generates, distributes and applies precise time for the communications, aerospace/defense, IT infrastructure and metrology industries.

The purchase price is for $7.18 per share, or about $230 million.

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

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