Applied Materials enters into five-year $1.5 billion credit agreement

By Wendy Van Sickle

Columbus, Ohio, Sept. 9 – Applied Materials, Inc. entered into a five-year $1.5 billion unsecured credit agreement on Sept. 3, according to an 8-K filed with the Securities and Exchange Commission.

Borrowings under the agreement bear interest at Libor plus an applicable margin ranging from 75 basis points to 125 bps, depending on the company’s debt rating. There is an annual commitment fee of 5 bps to 15 bps, also based on debt rating.

There is a letter of credit sub-facility of up to $400 million.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and the Bank of Tokyo-Mitsubishi UFJ, Ltd. acted as lead arrangers and bookrunners; JPMorgan Chase Bank, NA as administrative agent; Citigroup and the Bank of Tokyo-Mitsubishi UFJ as syndication agents; and BNP Paribas, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Bank USA, Mizuho Bank, Ltd., Wells Fargo Bank, NA and U.S. Bank NA as documentation agents.

Proceeds of the credit agreement may be used for general corporate purposes. The facility matures Sept. 3, 2020.

The new agreement replaces the company’s previous $1.5 billion credit agreement dated May 25, 2011. That agreement was set to mature May 25, 2017 but was terminated early with no borrowings outstanding.

Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.