Microchip Technology enters $2.75 billion five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 16 – Microchip Technology Inc. entered into an amended and restated credit agreement on Thursday, providing for a $2.75 billion revolver that matures on Dec. 16, 2026, according to an 8-K filed with the Securities and Exchange Commission.

At closing, there were $1,826,000,000 of revolving loans and $7.4 million of letters of credit outstanding under the credit agreement.

There is a $250 million foreign currency sublimit, a $25 million letter-of-credit sublimit and a $20 million swingline-loan sublimit.

Borrowings bear interest at SOFR or Sonia for loans denominated in pounds sterling plus a spread ranging from 112.5 basis points to 150 bps, depending on credit ratings.

There is a commitment fee ranging from 11 bps to 22.5 bps per annum, also depending on credit ratings.

The company may add up to $750 million in term loans or increased revolver commitments.

JPMorgan Chase Bank, NA is the administrative agent. JPMorgan Securities LLC, Wells Fargo Securities, LLC, Bank of America, NA, BMO Capital Markets Corp., U.S. Bank NA, Truist Securities, Inc., MUFG Bank, Ltd., BNP Paribas Securities Corp., Mizuho Bank, Ltd., TD Securities (USA) LLC, Fifth Third Bank, NA, DBS Bank Ltd., Royal Bank of Canada, Bank of Nova Scotia, Sumitomo Mitsui Banking Corp., PNC Capital Markets, LLC and Citizens Bank, NA are the bookrunners and lead arrangers.

Wells Fargo Bank, NA, Bank of America, NA, BMO Harris Bank, NA, US Bank, Truist, MUFG, BNP Paribas, Mizuho, Toronto-Dominion Bank, New York Branch, Fifth Third Bank, DBS, Royal Bank of Canada, Scotia, Sumitomo, PNC and Citizens are co-syndication agents.

The Chandler, Ariz.-based company provides microcontroller, mixed-signal, analog and Flash-IP solutions.

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