Microchip sets final price talk for three-year notes, five-year notes

By Devika Patel

Knoxville, Tenn., May 23 – Microchip Technology Inc. released final price talk for its planned sale of senior secured notes (Baa3//BBB-) in multiple tranches, according to a market source. The Rule 144A and Regulation S deal was announced Monday.

The company is selling a three-year fixed-rate tranche due June 1, 2021 and a five-year fixed-rate tranche due June 1, 2023.

Final price talk for the three-year notes was in the Treasuries plus 130 bps area, plus or minus 5 bps, and the notes were initially talked at Treasuries plus 150 bps to 162.5 bps.

Final price talk for the five-year notes was in the Treasuries plus 155 bps area, plus or minus 5 bps, and the notes were initially talked at Treasuries plus 175 bps to 187.5 bps.

Active bookrunners are BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used to help fund the acquisition of Microsemi Corp.

Debt financing for the acquisition also includes a $2 billion term loan (Baa3//BBB-) via JPMorgan.

Microchip Technology is a Chandler, Ariz., manufacturer of microcontroller, memory and analog semiconductors.

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