Super Micro gets NT$1.55 billion term loan, $105 million line of credit

By Wendy Van Sickle

Columbus, Ohio, July 26 – Super Micro Computer, Inc. entered into a general agreement for omnibus credit lines with CTBC Bank on July 20, according to an 8-K filing with the Securities and Exchange Commission.

The new agreement provides for a term loan of up to NT$1.55 billion and a line of credit of up to $105 million.

Interest rates are to be established according to individual credit arrangements.

Super Micro is subject to several financial covenants, including current ratio, debt service coverage ratio and financial debt ratio requirements.

If the company does not satisfy the covenants, the cap on the line of credit may be reduced to $70.7 million.

Super Micro plans to use borrowings to finance the expansion of renovation of the its Bade Manufacturing Facility in Taiwan.

Existing term loan amounts of $25.1 million with an interest rate of 0.75% and of $36 million with an interest rate of 0.45% were assumed under the new credit agreement, as was $15.5 million of revolver borrowings. Of the revolver borrowings, $6.5 million had an interest rate of 0.97% and $9 million had an interest rate of 1.03%.

The equivalent of $19.6 million is available under the term loan and $64.4 million is available under the line of credit.

Super Micro is a San Jose, Calif.-based server, storage technology and green computing company.

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