Analog Devices obtains $500 million revolving credit facility due 2017

By Marisa Wong

Madison, Wis., Dec. 20 - Analog Devices, Inc. entered into a $500 million senior unsecured revolving credit facility that expires on Dec. 19, 2017 with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility, completed on Dec. 19, has a $75 million sublimit for the issuance of standby letters of credit and a $25 million sublimit for swingline loans.

The company has the option of increasing the facility by up to $250 million with additional commitments from existing or new lenders.

Interest is equal to Libor plus a margin based on the company's debt rating. The margin ranges from 69 basis points to 110 bps.

The facility fee ranges from 6 bps to 15 bps.

The company may prepay loans in whole or in part at any time, without premium or penalty.

The agreement contains a consolidated leverage ratio covenant of total consolidated funded debt to consolidated EBITDA of not greater than 3.0 to 1.0.

At closing the company did not borrow any funds under the credit agreement, the filing said.

JPMorgan Chase Bank, NA is the syndication agent for the facility. Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities LLC are joint lead arrangers and joint bookrunners.

The company makes circuits for electronic equipment and is based in Norwood, Mass.

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