M/A-COM closes $300 million five-year revolver at Libor plus 200 bps

By Susanna Moon

Chicago, Sept. 30 - M/A-COM Technology Solutions Holdings, Inc. obtained a $300 million five-year revolving credit facility at an initial rate of Libor plus 200 basis points.

The spread ranges rom Libor plus 200 bps to 250 bps, based on leverage. The commitment fee is initially 30 bps and ranges from 30 bps to 37.5 bps.

The company amended its credit agreement last Thursday with J.P. Morgan Securities LLC as the bookrunner and lead arranger, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent. HSBC Bank USA, NA, RBS Citizens, NA, Bank of America, NA and TD Bank, NA are the co-documentation agents.

The facility may be upsized by $125 million.

Proceeds will be used for general corporate, working capital and capital expenditures, including refinancing debt and financing permitted acquisitions.

The credit agreement matures on Sept. 26, 2018.

The financial covenants require the company to maintain a maximum leverage ratio of no more than 2.5 times, which may be increased to 2.75 times for a limited time under certain circumstances; a minimum fixed charge coverage ratio of at least 1.5 times; and a minimum liquidity at least $15 million.

Borrowings under the agreement are secured by all of the assets of the company and M/A-COM Technology Solutions Inc., a wholly owned subsidiary.

At closing, there were no outstanding borrowings under the revolving credit facility and no draws were made on the credit agreement, the filing noted.

M/A-COM is an analog semiconductor based in Lowell, Mass.

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