Microsemi reveals talk on $250 million term A, term B repricing

By Sara Rosenberg

New York, June 7 – Microsemi Corp. released price talk on its $250 million incremental senior secured term loan A due Jan. 15, 2021 and repricing of its $854 million senior secured covenant-light term loan B due Jan. 15, 2023 in connection with its lender calls on Tuesday, according to a market source.

The term loan A is talked at Libor plus 250 basis points, subject to a grid, with no Libor floor and an original issue discount of 99.625, and the term loan B is talked at Libor plus 325 bps with a 0.75% Libor floor and a par issue price, the source said.

Included in the term loan B is 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc. is the lead bank on the $1,104,000,000 in senior secured term loans (BB).

Proceeds from the term loan A will be used to refinance a portion of the existing term loan B.

Term loan B amendments/commitments are due at 5 p.m. ET on Thursday, and term loan A commitments are due at noon ET on June 17, the source added.

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

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