Fairchild Semiconductor Closes on $150 Million Incremental Term Loan
May 19 2008 - 7:30AM
Business Wire
Fairchild Semiconductor (NYSE: FCS) announces that it has
successfully raised an additional $150 million under its existing
senior credit facility. The B-1 incremental term loan has an
interest rate of Libor + 2.50 percent and was offered at 100 basis
points in up-front fees with Banc of America Securities LLC and
J.P. Morgan Securities, Inc. as lead arrangers, and Deutsche Bank
Trust Company Americas as administrative agent. All other terms and
conditions including maturity date, amortization and financial
covenants follow the existing senior credit facility. In
conjunction with the close of the incremental term loan, the
company has initiated the call of its $200 million of five percent
convertible senior notes due November 1, 2008. The redemption
amount will be paid from the B-1 incremental term loan proceeds and
on-hand cash. At the current interest rates, this transaction is
approximately EPS neutral. �We received a very favorable response
from the credit markets with commitments from lenders far in excess
of our target proceeds,� said Mark Frey, Fairchild�s executive vice
president and CFO. �We have also had our credit rating upgraded by
S&P, to BB from BB-. We are pleased that the credit markets
recognized the significant progress we have made improving our
management of the semiconductor business cycle while maintaining
consistent profitability and positive cash flow.� The expected
completion date of the call on the five percent convertible senior
notes is June 10, 2008. About Fairchild Semiconductor: Fairchild
Semiconductor (NYSE: FCS) is a global leader delivering
energy-efficient power analog and power discrete solutions.
Fairchild is The Power Franchise�, providing leading-edge silicon
and packaging technologies, manufacturing strength and system
expertise for consumer, communications, industrial, portable,
computing and automotive systems. An application-driven,
solution-based semiconductor supplier, Fairchild provides online
design tools and design centers worldwide as part of its
comprehensive Global Power ResourceSM. Please contact us on the web
at www.fairchildsemi.com.
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