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FormFactor closes $150 million senior term loan at Libor plus 200 bps
By Marisa Wong
Morgantown, W.Va., June 28 – FormFactor, Inc. entered into a credit agreement with HSBC Bank USA, NA as administrative agent, co-lead arranger, bookrunner and syndication agent for a $150 million senior secured credit facility, according to an 8-K filing with the Securities and Exchange Commission.
FormFactor entered into the credit agreement in connection with its acquisition of Cascade Microtech, Inc., which was completed on June 24.
Loans bear interest at Libor plus 200 basis points.
The credit facility will mature on June 24, 2021.
Amortization on the loan is 5% in year one, 10% in year two, 20% in year three, 30% in year four and 35% in year five, with the balance to be paid at maturity.
The facility will be guaranteed by some of FormFactor’s existing and acquired direct and indirect domestic subsidiaries and is secured by a perfected first priority security interest in substantially all of the company’s assets and the assets of those guarantors.
The credit facility contains financial maintenance covenants requiring a ratio of total debt to EBITDA not in excess of 2.75 to 1.00, stepping down to 2.50 to 1.00 at the end of the fiscal quarter ending June 30, 2017, and a fixed-charge coverage ratio of not less than 1.50 to 1.00, stepping down to 1.30 to 1.00 on the fiscal quarter ending June 30, 2018 and to 1.20 to 1.00 at the end of the fiscal quarter ending June 30, 2019.
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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