Micron Semiconductor Asia obtains $800 million multi-draw term loan

By Wendy Van Sickle

Columbus, Ohio, Nov. 18 – Micron Semiconductor Asia Capital II Pte. Ltd. entered an agreement for an up to $800 million multiple-use term loan facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

HSBC Ltd., Singapore Branch, ING Bank NV, Singapore Branch, Malayan Banking Bhd., Singapore Branch and Oversea-Chinese Banking Corp. Ltd. acted as mandated lead arrangers and bookrunners. DBS Bank Ltd. acted as facility agent and security agent.

The first draw on the loan must be made by Feb. 16, and subsequent uses must be within 90 days of the first draw.

The facility will mature five years from the date of the first use of the loan, and principal is payable in 16 quarterly installments beginning 15 months from the first use.

Interest is Libor plus 240 basis points.

The company said it expects to borrow the full $800 million by the end of the availability period. Amounts repaid may not be borrowed again.

Proceeds will be used to purchase equipment from Micron Semiconductor Asia Pte. Ltd., which Micron Semiconductor Asia Capital II will lease back to Micron Semiconductor Asia.

The agreement contains covenants, including a maximum ratio of the outstanding loan to the fair market value of the equipment that secures the loan of 0.8 to 1.

The company is a subsidiary of Micron Technology Inc., a Boise, Idaho-based semiconductor company.

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