Silicon Laboratories gets $230 million five-year term loan, revolver

By Susanna Moon

Chicago, July 31 - Silicon Laboratories Inc. closed a $100 million term loan facility and a $130 million revolving credit facility at Libor plus 175 basis points.

Interest on the loans ranges from Libor plus 150 bps to 250 bps, based on leverage. The commitment fee is initially 27.5 bps, with a spread of 25 bps to 35 bps.

The revolver has a $25 million letter-of-credit sublimit and a $10 million swingline loan sublimit.

Silicon Laboratories may boost the size of the revolver by up to $50 million more with additional commitments.

The company signed a $230 million five-year credit agreement Wednesday with Bank of America, NA as administrative agent and with Bank of America Merrill Lynch and Wells Fargo Securities LLC as lead arrangers and book managers, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the syndication agent, and Regions Bank is the documentation agent.

There were no funds drawn under the agreement at closing.

In order to tap the term loan, Silicon Laboratories must concurrently pay off its remaining obligations under the operating leases for its headquarters and the related participation agreements, the release noted.

The term loan provides for quarterly principal amortization, equal to 5% of the principal in each of the first two years and 10% of the principal in each of the next three years, with the remaining balance due at maturity.

The covenants require Silicon Laboratories to maintain a leverage ratio, of funded debt to EBITDA, of no more than 2.5 times and a minimum fixed charge coverage ratio, of EBITDA to fixed charges, of at least 1.5 times.

Silicon Laboratories designs and develops, analog-intensive, mixed-signal integrated circuits for a range of applications. The company is based in Austin, Texas.

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