Microsemi to launch roughly $2.4 billion credit facility on Wednesday

By Sara Rosenberg

New York, Nov. 30 – Microsemi Corp. scheduled a bank meeting for 1 p.m. ET in New York on Wednesday to launch a $2,425,000,000 senior secured credit facility, according to a market source.

Morgan Stanley Senior Funding Inc., the Bank of Tokyo-Mitsubishi UFJ Ltd. and Deutsche Bank Securities Inc. are the lead arrangers and bookrunners on the deal.

The facility consists of a $350 million revolver, a $650 million term loan A and a $1,425,000,000 term loan B, the source said.

Proceeds will be used to help fund the acquisition of PMC-Sierra Inc. and refinance existing debt.

The company previously said in an 8-K filed with the Securities and Exchange Commission that it had received for the transaction a commitment for a $2,925,000,000 senior secured credit facility consisting of a $350 million five-year revolver, a $375 million five-year term loan A and a $2.2 billion seven-year covenant-light term loan B.

Under the agreement, PMC shareholders will receive $9.22 in cash and 0.0771 of a share of Microsemi common stock for each share of PMC common stock through an exchange offer. The transaction is valued at about $2.5 billion.

Other funds for the transaction will come from cash on hand and Microsemi common stock.

Closing is expected in the first quarter of 2016, subject to regulatory approvals, the tender of at least a majority of the outstanding shares of PMC’s common stock and customary conditions.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions. PMC is a Sunnyvale, Calif.-based fabless semiconductor company.

© 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.