On December 14, 2020, Microchip Technology Incorporated announced the pricing of $1.4 billion in aggregate principal amount of senior secured notes due February 15, 2024, which will bear interest at an annual rate of 0.972 percent. The offering of the notes closed on December 17, 2020. Microchip intends to use the net proceeds from the offering of the notes to repay substantially all amounts outstanding under its term loans under its Amended and Restated Credit Agreement dated as of May 29, 2018, as amended, and to use borrowings under its revolving credit facility to pay all related fees and expenses of the offering and the remaining balance of its outstanding term loans.
The notes will be guaranteed on a joint and several basis by certain of Microchip’s subsidiaries (the “guarantors”) that guarantee obligations under Microchip’s term loan facility and revolving credit facility (collectively, the “senior credit facilities”) as well as Microchip’s outstanding 3.922 percent senior secured notes due 2021, 4.333 percent senior secured notes due 2023, and 2.67 percent senior secured notes due 2023 (collectively, the “existing secured notes”). The notes and the related guarantees will be secured on a pari passu first lien basis with Microchip’s senior credit facilities and its existing secured notes by the collateral that secures such obligations.
Wilson Sonsini Goodrich & Rosati represented Microchip in the transaction. The Wilson Sonsini team includes:
Corporate Finance (Debt)
Michael Occhiolini
Mike Rosati
Corporate Finance (Credit)
Kathy Rothman
Jill Fulwiler
Joseph Catapano
Corporate (Austin)
Rob Suffoletta
Nathan Robinson
Emily Coskey
Nick Haenel
Melanie Froh
For more information, please see Microchip’s press release.