Sanmina gets restated $375 million revolver at Libor plus 175 bps

By Angela McDaniels

Tacoma, Wash., May 20 – Sanmina Corp. entered into an amended and restated credit agreement on Wednesday that provides for a $375 million secured revolving credit facility due May 20, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $75 million letter-of-credit sublimit, a $30 million swingline loan sublimit and a $125 million accordion feature.

If, on any day during the six months prior to the maturity date of the company’s 4 3/8% senior secured notes due June 2019, the company does not meet a specified liquidity threshold and the 4 3/8% notes have not been repaid in full, the credit agreement will terminate on that day or 92 days prior to the maturity date of the 4 3/8% notes, whichever is later.

The initial interest rate is Libor plus 175 basis points and the initial commitment fee is 25 bps. The margin over Libor ranges from 150 bps to 200 bps, and the commitment fee ranges from 20 bps to 30 bps. Both depend on the company’s leverage ratio.

Proceeds may be used for working capital and general corporate purposes.

The company must comply with a minimum consolidated interest coverage ratio of 3 to 1, measured at the end of each fiscal quarter, and at all times a maximum consolidated leverage ratio of 3.5 to 1.0.

Bank of America, NA is the agent. Bank of Tokyo-Mitsubishi UFJ, Ltd. is the syndication agent. Bank of the West, SunTrust Bank and Wells Fargo Bank, NA are the documentation agents. BofA Merrill Lynch and Bank of Tokyo-Mitsubishi UFJ are the arrangers and bookrunners.

Sanmina is a San Jose, Calif.-based electronic manufacturing services provider.

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