Avago Technologies arranges $575 million revolver via Citicorp

By Toni Weeks

San Luis Obispo, Calif., Oct. 30 - Avago Technologies Ltd. arranged a $575 million revolving credit facility with Citicorp International Ltd. as administrative agent on Oct. 28, according to an 8-K filing with the Securities and Exchange Commission.

The loan may be increased to $675 million.

Borrowings bear interest at the Eurocurrency rate plus 112.5 basis points to 175 bps, with the exact margin based on the company's debt rating. The Eurocurrency rate is (i) Libor divided by (ii) 100% minus the Eurocurrency reserve percentage, which ranges from 15 bps to 37.5 bps based on debt ratings.

The credit agreement requires subsidiary Avago Technologies Finance Ptd. Ltd. to maintain a maximum leverage ratio and a minimum interest coverage ratio.

The terms of the credit agreement are substantially the same as Avago Finance's credit agreement dated March 31, 2011.

Barclays Bank plc is the syndication agent. Barclays and Citigroup Global Markets Inc. are joint lead arrangers and bookrunners.

Borrowings may be used for general corporate purposes and for up to $20 million in letters of credit.

Avago is a Singapore-based designer, developer and supplier of analog semiconductor devices.

© 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.