Semtech amends facility; JPMorgan takes over as administrative agent

Chicago, Sept. 29 – Semtech Corp. amended its credit agreement on Sept. 26, including appointing JPMorgan Chase Bank, NA as successor administrative agent and collateral agent to the agreement, according to an 8-K filing with the Securities and Exchange Commission.

In the amendment, $405 million of the initial $600 million of revolving commitments have been extended five years from the restatement effective date, which will be concurrent with the company’s acquisition of Sierra Wireless. Previously, the maturity date was on Nov. 7, 2024.

The company may borrow a new five-year term loan for $895 million to fund the cash consideration for the acquisition of Sierra Wireless and related fees and expenses.

Additionally noted, the maximum consolidated leverage covenant has been modified.

Interest will be SOFR plus 125 basis points to 225 bps. The commitment fee will be between 20 bps and 35 bps.

Previously, HSBC Bank USA, NA was the administrative agent and collateral agent.

JPMorgan Chase Bank, NA, HSBC Bank USA, NA, U.S. Bank NA, Wells Fargo Securities, LLC and Bank of the West are the lead arrangers and bookrunners for the third restatement.

The co-syndication agents are HSBC, U.S. Bank, Wells Fargo and Bank of the West.

The co-documentation agents are Bank of China, Los Angeles Branch, Silicon Valley Bank and BMO Harris Bank.

Semtech is a Camarillo, Calif.-based supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. Sierra Wireless is a British Columbia-based Internet of Things solutions provider.

© 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.