Vishay gets $375 million amended and restated credit facility

By Sara Rosenberg

New York, June 25 - Vishay Intertechnology Inc. amended and restated its credit facility to get a new $125 million three-year senior secured term loan in addition to the existing $250 million revolver, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

As part of the amendment and restatement, pricing on the company's revolver was revised.

Comerica Bank acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on June 24. Bank of America and JPMorgan acted as co-syndication agents, and HSBC Bank acted as documentation agent.

Pricing on the term loan is Libor plus 250 basis points.

The term loan is expected to be drawn in July to help repurchase the company's $500 million 3 5/8% convertible subordinated notes due 2023.

Other funds for the repurchase will come from approximately $125 million in revolver borrowings and approximately $250 million in cash on hand.

"We are pleased that we were able to successfully raise an additional $125 million in term debt. We received commitments in excess of our targeted amount. The repayment of the convertible notes will reduce our debt and strengthen our balance sheet. Last June, our board of directors determined to waive our right to settle the principal amount of the notes in common stock. By settling the option in cash, we eliminated the need to issue almost 50 million shares of common stock," said Richard Grubb, chief financial officer, in a news release.

Vishay is a Malvern, Pa.-based manufacturer of discrete semiconductors and passive electronic components.

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