Analog Devices enters $2 billion 90-day term loan with Credit Suisse

By Jennifer Chiou

New York, July 22 – Analog Devices, Inc. entered into a $2 billion 90-day term loan facility with Credit Suisse AG as administrative agent and used the full proceeds, along with cash on hand, to pay the consideration for the company’s merger with Hittite Microwave Corp., according to an 8-K filing with the Securities and Exchange Commission.

The company completed its tender offer to purchase all outstanding Hittite Microwave common shares for $78.00 per share in cash.

Borrowings under the facility will bear interest at Libor plus 100 basis points. The rate will increase by 25 bps per year if the company’s debt rating by either Standard & Poor’s or Moody’s Investors Service is downgraded by one notch or more.

The filing stated that payments of the principal amounts of revolving loans under the credit agreement are due no later than Oct. 20.

There is no prepayment penalty.

The credit agreement contains a consolidated leverage ratio covenant of total consolidated funded debt to consolidated EBITDA of no greater than 3.0 to 1.0.

The maker of signal processing chips is based in Norwood, Mass.

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