Intersil releases price talk on $465 million facility with launch

By Sara Rosenberg

New York, April 13 - Intersil Corp. launched on Tuesday its $390 million six-year senior secured term loan with price talk in the Libor plus 350 basis points area and its $75 million 31/2-year revolver with price talk in the Libor plus 325 bps area, according to market sources.

Pricing on the revolver is subject to a leverage-based grid, and there is a 50 bps undrawn fee.

The term loan is being offered at an original issue discount of 99, and the revolver is being offered at a discount of 981/2, sources said.

Both tranches include a Libor floor that is being talked in the 1.5% to 1.75% range, sources added.

Morgan Stanley and Bank of America are the lead banks on the $465 million deal (Ba2).

Financial covenants include a maximum leverage ratio and a minimum fixed-charge coverage ratio.

The term loan includes a $50 million accordion feature.

Proceeds will be used to help fund the acquisition of Techwell Inc. for $18.50 per share. Net of Techwell's cash and equivalents, the transaction values Techwell at about $370 million.

The acquisition is expected to close during Intersil's second quarter and is subject to customary regulatory approvals and the satisfaction of other transaction conditions, including the tender of at least 50% of Techwell's outstanding shares.

Intersil is a Milpitas, Calif.-based designer and manufacturer of high-performance analog and mixed-signal semiconductors. Techwell is a San Jose, Calif.-based fabless semiconductor company.

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