Teradyne enters into $350 million five-year senior secured revolver

By Marisa Wong

Madison, Wis., May 1 – Teradyne, Inc. entered into a credit agreement on April 27 for a $350 million five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Barclays Bank plc, Bank of America, NA, Silicon Valley Bank and SunTrust Robinson Humphrey, Inc. are the joint lead arrangers and joint bookrunners with Barclays Bank as administrative agent, collateral agent and syndication agent, Barclays Bank, Bank of America, Silicon Valley Bank, SunTrust Bank and Wells Fargo Bank, NA as co-documentation agents, Wells Fargo Bank, NA as co-arranger and JPMorgan Chase, NA as managing agent.

Under the credit agreement, the company may seek incremental commitments in an aggregate principal amount of up to $150 million.

Interest is equal to Libor plus a margin ranging from 100 basis points to 200 bps, based on the company’s consolidated leverage ratio.

In addition, the company will pay a commitment fee on the unused portion of the commitments ranging from 12.5 bps to 35 bps, also based on the consolidated leverage ratio.

The credit agreement requires the company to satisfy two financial ratios measured as of the end of each fiscal quarter: a consolidated leverage ratio and an interest coverage ratio.

Loan proceeds may be used for general corporate purposes and working capital. Currently, the company has not borrowed any funds under the facility.

Teradyne is a North Reading, Mass.-based provider of automatic test equipment products and services.

© 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.