Published on 3/5/2024 in the Prospect News Investment Grade Daily.
New Issue: Microchip Technology sells $1 billion 5.05% five-year notes at Treasuries plus 95 bps
By Wendy Van Sickle
Columbus, Ohio, March 5 – Microchip Technology Inc. sold a $1 billion offering of 5.05% senior secured notes due 2029 (Baa1//BBB) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.823 to yield 5.09% with a spread of 95 basis points over Treasuries.
The notes will be guaranteed by certain subsidiaries.
J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and BofA Securities, Inc. are bookrunning managers. Truist Securities, Inc. and Wells Fargo Securities, LLC are also joint bookrunners.
Proceeds will be used to repay a portion of commercial paper.
The Chandler, Ariz.-based company develops and manufactures smart, connected and secured embedded control solutions.
| Issuer: | Microchip Technology Inc.
|
| Amount: | $1 billion
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| Issue: | Senior secured notes
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| Maturity: | March 15, 2029
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| Bookrunners: | J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Securities, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Siebert Williams Shank & Co., LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, BMO Capital Markets Corp., U.S. Bancorp Investments, Inc., Citizens JMP Securities, LLC, Fifth Third Securities, Inc. and PNC Capital Markets LLC
|
| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Wilson Sonsini Goodrich & Rosati
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Coupon: | 5.05%
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| Price: | 99.823
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| Yield: | 5.09%
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| Spread: | 95 bps
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| Call protection: | Make-whole call at Treasuries plus 15 bps until Feb. 15, 2029, then callable at par
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| Change-of-control put: | At 101
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| Trade date: | March 5
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| Settlement date: | March 7
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| Ratings: | Moody’s: Baa1
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| Fitch: BBB
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| Distribution: | SEC registered
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| Cusip: | 595017BE3
|
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