Micron Technology closes $2.6 billion term loan in three parts

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – Micron Technology, Inc. entered a term loan agreement providing for $2.6 billion in three parts on Nov. 3, according to an 8-K filing with the Securities and Exchange Commission.

The full amount was drawn at closing and consists of $926.7 million of term A-1 loans maturing Nov. 3, 2025, $746.7 million of term A-2 loans maturing Nov. 3, 2026 and $926.7 million of term A-3 loans maturing Nov. 3, 2027.

The term A-1 loan does not amortize. The term A-2 and A-3 loans each amortize in equal quarterly installments in an amount equal to 1.25% of the original principal amount.

Borrowings bear interest at SOFR plus a credit spread adjustment of 10 basis points plus a spread ranging from 100 bps to 200 bps, depending on the company’s corporate ratings.

Wells Fargo Securities, LLC, Mizuho Bank, Ltd. and Truist Securities, Inc. acted as joint bookrunners and joint lead arrangers. Wells Fargo Bank, NA is the administrative agent.

The company is required to maintain on a consolidated basis a leverage ratio of total indebtedness to EBITDA as of the last day of each fiscal quarter, not to exceed 3.25x, subject to a temporary four fiscal quarter to 3.75x following certain material acquisitions.

Proceeds will be used for general corporate purposes, which may include capital expenditures.

Micron is a Boise, Idaho-based semiconductor manufacturer.

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