MaxLinear plans $425 million secured term loan B for Exar purchase

By Sara Rosenberg

New York, March 29 – MaxLinear Inc. has received a commitment for a $425 million secured covenant-light term loan B to help fund its acquisition of Exar Corp., according to an SC TO-C filed with the Securities and Exchange Commission on Wednesday.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the joint lead arrangers and bookrunners on the deal.

Under the agreement, Exar is being bought for $13.00 per share in cash. The total value is about $700 million, or $472 million net of Exar’s cash acquired.

Other funds for the transaction will come from cash from the combined balance sheets.

Closing is expected in the second quarter, subject to regulatory approvals, a minimum tender requirement and customary conditions.

Projected last-12-months gross debt to EBITDA is 2.6 times at closing, including synergies, and 2.8 times without synergies.

MaxLinear is a Carlsbad, Calif.-based provider of integrated radio frequency and mixed-signal integrated circuits for the connected home and wired and wireless infrastructure markets. Exar is a Fremont, Calif.-based designer and developer of high performance analog mixed-signal ICs and sub-system solutions.

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