RF Micro Devices gets $125 million four-year revolver led by BofA

By Susanna Moon

Chicago, March 25 - RF Micro Devices, Inc. closed a $125 million four-year revolving credit facility on March 19 arranged by BofA Merrill Lynch as lead arranger and book manager, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures on March 19, 2017.

The facility includes a $5 million sublimit for the issuance of standby letters of credit and a $5 million sublimit for swingline loans.

The company may request an increase of up to $50 million from time to time.

Interest on the loans is initially Libor plus 225 basis points, with a range of Libor plus 225 bps to 275 bps based on leverage. The commitment fee ranges from 30 bps to 40 bps and is initially 30 bps.

Proceeds will be used to finance working capital, capital expenditures and other corporate purposes.

There is currently no debt outstanding under the credit agreement.

Bank of America, NA is the administrative agent and a lender. Silicon Valley Bank, SunTrust Bank, TD Bank, NA and Union Bank, NA are the co-documentation agents.

The financial covenants require that the company maintain a consolidated leverage ratio of no more than 2.5 times and a consolidated liquidity ratio of at least 1.05 times. The company also must maintain consolidated EBITDA of at least $75 million as of the end of any fiscal quarter.

RF Micro Devices designs and manufactures high-performance radio frequency components and is based in Greensboro, N.C.

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