Microsemi pays down credit agreement, intends to redeem 9 1/8% notes

By Sarah Lizee

Olympia, Wash., May 29 – Microsemi Corp. repaid and terminated its senior secured credit agreement dated Jan. 15, 2016 with Morgan Stanley Senior Funding, Inc. as administrative agent in connection with its acquisition by Microchip Technology Inc., according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement was comprised of a term loan A facility and a revolving facility maturing on Jan. 15, 2021, and a term loan B facility maturing on Jan. 15, 2023.

As of Friday, the total amount of outstanding debt under the facilities was roughly $1,742,000,000 plus accrued interest.

Additionally, the company said it issued a conditional notice to redeem all $279,243,000 of its outstanding 9 1/8% senior notes due 2023.

The notes will be redeemed on June 15 at 106.844% of par plus a make-whole premium calculated using a discount rate of Treasuries plus 50 basis points plus accrued interest to the redemption date.

The redemption was conditioned on the completion of the merger and the financing being obtained under the terms of the merger agreement.

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

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