Microchip Technology Closes $2.0 Billion Credit Agreement
CHANDLER, Ariz.--(BUSINESS WIRE)-- Microchip Technology Incorporated (NAS: MCHP) , a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, announced today that it has executed a new $2.0 billion unsecured credit agreement with a group of lenders with $1.65 billion of such amount being a revolving loan facility and $350 million being a term loan. Borrowings under this facility are expected to be used for general corporate purposes including potential acquisition activity. The agreement has a five year term and an option to increase the amount available to $2.3 billion. The agreement replaces the $750 million unsecured credit agreement that Microchip previously had in place.
Steve Sanghi, President and CEO, said, "Microchip's strong execution and business model have allowed us to put this credit agreement in place under what we believe are very favorable terms. The facility provides us with additional flexibility to pursue our business objectives with minimal immediate income statement impact based on our current level of borrowing activity."
JP Morgan Securities LLC, Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, HSBC Bank USA, National Association and US Bank National Association served as Joint Bookrunners and Joint Lead Arrangers for this transaction.
The statements contained in this release relating to the use of proceeds of the credit facility and the additional flexibility to pursue our business objectives with minimal immediate income statement impact are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to: the timing and amount of any loans under the facility, our ability to comply with the covenants and other terms of the facility, our ability to identify and execute on our business objectives including suitable acquisition opportunities; our other needs for capital to fund our business or for any acquisitions we may make; our balance of cash and investments and cash flows from our business and whether such balances and cash flows are in the U.S. or offshore; disruptions in the credit markets and general economic, industry or political conditions in the United States or internationally. For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip's website (www.microchip.com) or the SEC's website (www.sec.gov) or from commercial document retrieval services.
Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this June 27, 2013 press release, or to reflect the occurrence of unanticipated events.
Microchip Technology Incorporated is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.
The Microchip logo and name are registered trademarks of Microchip Technology Incorporated.
Investor Relations Contact:
Microchip Technology Incorporated
J. Eric Bjornholt, CFO, (480) 792-7804
KEYWORDS: United States North America Arizona
The article Microchip Technology Closes $2.0 Billion Credit Agreement originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.