FormFactor plans $150 million term loan for Cascade purchase

By Sara Rosenberg

New York, Feb. 10 – FormFactor Inc. has received a commitment for a $150 million senior secured term loan to help fund its acquisition of Cascade Microtech Inc., according to an 8-K filed late Tuesday with the Securities and Exchange Commission.

HSBC Bank USA, MUFG, Comerica Bank and Silicon Valley Bank are the leads on the debt.

Under the agreement, Cascade is being bought for $16 in cash and 0.6534 of a share of FormFactor common stock per Cascade share. The transaction values Cascade at $352 million.

Other funds for the acquisition will come from $120 million of cash on hand.

The company is projecting last-12-months gross debt to EBITDA of 2.6 times at closing.

The 2015 revenues of the combined company on a pro forma basis would be over $426 million.

Closing is expected mid-year, subject to customary regulatory approvals and the approval by Cascade’s stockholders. The transaction is not subject to a financing condition.

FormFactor is a Livermore, Calif.-based provider of wafer test technologies and expertise. Cascade is a Beaverton, Ore.-based designer, developer and manufacturer of advanced wafer probing solutions for the electrical measurement and test of semiconductor integrated circuits and chips.

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