Analog Devices (ADI) Enters $5 Billion Term Loan Facility

September 29, 2016 8:02 AM EDT

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Analog Devices, Inc. (NASDAQ: ADI) entered into a new term loan facility and an amended and restated revolving credit agreement.

The Company’s new term loan facility will consist of a 3-year unsecured term loan facility in the principal amount of $2.5 billion and a 5-year unsecured term loan facility in the principal amount of $2.5 billion.

The Company intends to use the new term loan facility, together with cash on hand and future bond issuances, to partially fund the proposed acquisition of Linear Technology Corporation. As a result, the borrowings under the term loan facility are conditioned upon the closing of the proposed acquisition.

The interest rates associated with the term loans are LIBOR-based and will vary depending on the Company’s debt ratings. Based on its current debt ratings, the Company expects the blended effective interest rate of the term loans to be approximately 2%.

The Company has also amended and restated its revolving credit agreement. Subject to closing the acquisition of Linear Technology and the satisfaction of certain other conditions, the aggregate amount of commitments under the revolving credit facility will increase to $1 billion from $750 million. The revolving credit facility expires on July 10, 2020 and is currently undrawn.

JPMorgan Chase Bank, N.A serves as administrative agent on the term loan facility, JPMorgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC and MUFG (The Bank of Tokyo-Mitsubishi UFJ, Ltd.) serve as joint lead arrangers and joint bookrunners, Bank of America, N.A., Credit Suisse Securities (USA) LLC and MUFG (The Bank of Tokyo-Mitsubishi UFJ, Ltd.), as syndication agents, and Wells Fargo Bank, National Association, PNC Bank, National Association, BMO Harris Bank, N.A., DBS Bank Ltd., Sumitomo Mitsui Banking Corporation, TD Bank, N.A., The Bank of New York Mellon, Fifth Third Bank, an Ohio Banking Corporation and Deutsche Bank Securities Inc., as documentation agents.

Bank of America, N.A. serves as administrative agent, swing line lender and L/C Issuer under the amended and restated revolving credit facility, JPMorgan Chase Bank, N.A., Credit Suisse AG , Cayman Islands Branch and MUFG (The Bank of Tokyo-Mitsubishi UFJ, Ltd.), as syndication agents and L/C Issuers, Merrill Lynch, Pierce, Fenner & Smith Incorporated, JPMorgan Chase Bank, N.A., Credit Suisse Securities (USA) LLC and MUFG (The Bank of Tokyo-Mitsubishi UFJ, Ltd.), as joint lead arrangers and joint bookrunners, and Deutsche Bank Securities Inc., Sumitomo Mitsui Banking Corporation, Wells Fargo, National Association, BMO Harris Bank, N.A., DBS Bank Ltd., PNC Bank, National Association, TD Bank, N.A. and The Bank of New York Mellon, as documentation agents.



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