FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Morgan Stanley Agents $50MM Upsize to Microsemi Revolver

May 22, 2017, 07:26 AM
Filed Under: Semiconductor

Microsemi Corporation announced that it entered into an Increase Revolving Joinder No. 1 to Credit Agreement with respect to an increase in revolving commitments under its existing Credit Agreement dated as of January 15, 2016, with Morgan Stanley Senior Funding, Inc., as administrative agent, and the lenders party thereto.

According to an SEC filing, the Increase Revolving Joinder provides for, among other things, a $50,000,000 increase in total revolving commitments under the Credit Agreement (such $50,000,000 of commitments being referred to as the “Incremental Revolving Commitments”). After giving effect to the Increase Revolving Joinder, the Incremental Revolving Commitments are a part of the revolving credit facility under the Credit Agreement and such Revolving Facility has total commitments in the amount of $375,000,000.

The Revolving Facility terminates January 15, 2021. Loans outstanding under the Revolving Facility, including in respect of the Incremental Revolving Commitments bear interest at Microsemi’s option at Base Rate or LIBOR, plus a margin. The margin for Base Rate Revolving Loans is 0.75% and the margin for LIBOR Revolving Loans is 1.75%. Revolving Loans are subject to a 0.00% LIBOR floor. The Credit Agreement also requires Microsemi to pay a commitment fee of 0.25% for the unused portion of the Revolving Facility. Interest for Base Rate-based loans is calculated on the basis of a 365/366-day year and interest for LIBOR-based loans is calculated on the basis of a 360-day year.

The Revolving Facility contains certain representations and warranties, certain affirmative covenants, certain negative covenants, certain conditions and events of default that are set forth in the Existing Credit Agreement.
All obligations of Microsemi in respect of the Revolving Facility (including with respect to the Incremental Revolving Commitments) are unconditionally guaranteed by each of the guarantors under Microsemi’s Existing Credit Agreement. The Revolving Facility (including the Incremental Revolving Commitments) is secured by a lien and security interest in the collateral that also secures the other loans and obligations under the Existing Credit Agreement. Certain of the lenders party to the Credit Agreement, as well as certain of their respective affiliates, have performed, and may in the future perform, commercial banking, investment banking, underwriting and other financial advisory services for Microsemi, for which they have received, and will receive, customary fees and expenses.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.