Spansion modifies discount on $84 million add-on term loan B to 99

By Sara Rosenberg

New York, Dec. 16 - Spansion LLC widened the original issue discount on its $84 million of fungible add-on senior secured term loan B to 99 from talk of 99½ to par, according to a market source.

As before, pricing on the add-on, as well as on the company's existing $216 million term loan B, will be Libor plus 300 basis points with a 0.75% Libor floor.

The existing loan is being repriced from Libor plus 400 bps with a 1.25% Libor floor.

The repricing is still offered at par.

Included in the entire $300 million six-year senior secured term loan B is 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and Barclays are the lead banks on the deal.

Proceeds from the add-on will be used to refinance the company's existing 7 7/8% senior notes due 2017.

Closing is targeted for Wednesday.

Spansion is a Sunnyvale, Calif.-based semiconductor device company principally dedicated to designing, manufacturing, marketing, licensing and selling NOR Flash memory technology.

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