Qorvo enters $300 million revolver, $200 million term loan

By Wendy Van Sickle

Columbus, Ohio, Sept. 29 – Qorvo, Inc. entered into a $500 million five-year amended and restated unsecured senior credit facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

BofA Securities, Inc., Wells Fargo Securities, LLC and Citibank, NA are the joint lead arrangers and bookrunners. Bank of America, NA is administrative agent, swingline lender and letter-of-credit issuer. Wells Fargo Bank, NA, Citibank, TD Bank, NA, MUFG, PNC Bank, NA, Bank of the West, Truist Bank and Morgan Stanley Bank, NA are co-syndication agents.

The credit facility consists of a $300 million senior revolving line of credit and a $200 million senior term loan.

Up to $25 million of the revolver may be used for the issuance of standby letters of credit, and up to $10 million may be used for swingline advances.

The company may request at any time that the facility be increased by up to $500 million.

Loans will bear interest at Libor plus an applicable rate ranging from 100 basis points to 125 bps, depending on the company’s consolidated leverage ratio. Interest will initially be Libor plus 112.5 bps.

Undrawn amounts under the revolver and term loan are subject to a commitment fee ranging from 15 bps to 20 bps.

The credit agreement contains financial covenants requiring the company to maintain: (a) A maximum consolidated leverage ratio of 3 times as of the end of any fiscal quarter, provided that in connection with a permitted acquisition in excess of $300 million, the maximum consolidated leverage ratio may increase on two occasions during the term of the facility to 3.5 times for four consecutive fiscal quarters, beginning with the fiscal quarter in which that acquisition occurs; and (b) a minimum interest coverage ratio of 3 times as of the end of any fiscal quarter.

Proceeds of the term loan, together with the proceeds from an offering of notes, will be used to redeem all of the company’s outstanding $900 million of 5˝% senior notes due 2026 and repay Qorvo’s existing term loan.

The revolver is available to finance working capital, capital expenditures and other corporate purposes.

Qorvo provides core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.

© 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.