Littelfuse restates credit agreement for $1 billion, including new $300 million term loan

By Wendy Van Sickle

Columbus, Ohio, June 30 – Littelfuse Inc. entered into a credit agreement providing for a $700 million senior unsecured revolving credit facility and a new $300 million unsecured term loan credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s credit agreement that was restated on April 3, 2020.

Under the latest amendment, certain financial and non-financial covenants were made less restrictive on the company and its subsidiaries; term SOFR replaced Libor as an interest rate benchmark; performance-based interest rate margins were modified; and the maturity date was extended to June 30, 2027.

The margin for SOFR borrowings will range from 100 basis points to 175 bps, and the revolving commitment fee will range from 10 bps to 17.5 bps, both depending on consolidated net leverage ratio.

From time to time, Littelfuse may increase the size of the revolver or enter into one or more tranches of term loans in minimum increments of $25 million if there is no event of default and the company is in compliance with certain financial covenants.

The term loans were fully advanced at closing. Their principal balance must be repaid in quarterly installments on the last day of each calendar quarter in the amount of $1,875,000 starting Sept. 30, 2022, through June 30, 2024, and in the amount of $3.75 million starting Sept. 30, 2024, through March 31, 2027, with the remaining outstanding principal balance payable in full at maturity.

Bank of America, NA is the agent. BofA Securities, Inc. is the bookrunner and is a joint lead arranger along with JPMorgan Chase Bank, BA. JPMorgan is syndication agent. Co-senior documentation agents are PNC Bank, NA and BMO Harris Bank, NA, with Wells Fargo Bank, NA as documentation agent.

Littelfuse is a Chicago-based industrial technology manufacturing company. C&K is a Waltham, Mass.-based designer and manufacturer of high-performance electromechanical switches and interconnect solutions.

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