Avago Technologies to launch $5.1 billion credit facility on Thursday

By Sara Rosenberg

New York, April 1 - Avago Technologies Ltd. scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch its $5.1 billion credit facility (BBB-), according to a market source.

Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the bookrunners on the deal.

The facility consists of a $500 million five-year revolver and a $4.6 billion seven-year term loan B.

Included in the B loan is 101 soft call protection for six months.

Proceeds will be used to help fund the acquisition of LSI Corp. for $11.15 per share in an all-cash transaction valued at $6.6 billion.

Other funds for the transaction are expected come from $1 billion of cash and a $1 billion investment by Silver Lake Partners in the form of 2% unsecured notes convertible at $48.04 per share or preferred stock.

Closing is expected in the first half of this year, subject to regulatory approvals in various jurisdictions, LSI stockholder approval and customary conditions.

Avago is a Singapore-based designer, developer and supplier of analog semiconductor devices. LSI is a San Jose, Calif.-based designer of semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing.

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