Analog Devices repays $300 million debt, ‘comfortable’ with debt level

By Devika Patel

Knoxville, Tenn., Aug. 21 – Analog Devices, Inc. repaid $300 million of debt last quarter and management says that it is comfortable with the company’s current debt position.

“In the third quarter, we repaid $300 million of debt,” senior vice president of finance and chief financial officer Prashanth Mahendra-Rajah said on the company’s third quarter ended Aug. 3 earnings conference call on Wednesday.

“This is a business that generates a tremendous amount of cash flow, so compared to how the company was run several years ago, we are very comfortable with debt on the balance sheet.

“I don’t see us ever moving to the large cash surplus that we used to be at.

“We’re really focused on maintaining that investment-grade rating so we’re going to be mindful of what the broader interest environment looks like and how the ratings agencies view us to ensure that we’re doing what is necessary to maintain that investment-grade [rating],” he said.

Cash and cash equivalents were $612,164,000 as of Aug. 3, 2019, compared to $816,591,000 as of Nov. 3, 2018.

Long-term debt was $5,278,643,000 as of Aug. 3, 2019, compared to $6,265,674,000 as of Nov. 3, 2018.

The maker of circuits for electronic equipment is based in Norwood, Mass.

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