Microsemi cuts $375 million term loan B spread to Libor plus 350 bps

By Sara Rosenberg

New York, Oct. 22 - Microsemi Corp. reduced pricing on its $375 million seven-year term loan B to Libor plus 350 basis points from initial talk of Libor plus 375 bps to 400 bps, according to a market source.

The B loan's 1.5% Libor floor and original issue discount of 99 were left unchanged, the source said.

The company's $425 million senior credit facility (Ba1) also includes a $50 million five-year revolver that is priced at Libor plus 350 bps as well.

Morgan Stanley is the lead bank on the deal.

There is a $100 million accordion feature.

Financial covenants include a maximum leverage ratio and a minimum fixed-charge coverage ratio.

Proceeds will be used to help fund the acquisition of Actel Corp. for $20.88 per share through a cash tender offer and to refinance an existing revolver.

The total acquisition value is about $430 million, net of Actel's projected cash balance at closing.

Closing is expected in Microsemi's fiscal first quarter ending Jan. 2, subject to customary conditions, including the tender of a majority of the outstanding shares of Actel's common stock and regulatory approvals.

Microsemi is an Irvine, Calif.-based designer, manufacturer and marketer of analog and mixed-signal integrated circuits, semiconductors and RF subsystems. Actel is a Mountain View, Calif.-based supplier of low-power, mixed-signal and radiation-tolerant field programmable gate arrays.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.