Semtech Corporation (NASDAQ: SMTC) entered into a new credit agreement on July 6, 2026, establishing a $360 million revolving credit facility with Morgan Stanley Senior Funding, Inc. as administrative agent, according to an 8-K filing.

The revolving credit facility was undrawn at closing and matures on July 6, 2031. The agreement also includes an uncommitted incremental term loan facility. Combined, the incremental facility and any additional increases to the revolving facility are capped at the greater of $332 million or 100% of Consolidated EBITDA, with an unlimited amount available provided the pro forma Consolidated First Lien Net Leverage Ratio remains below 3.50:1.00.

Proceeds may be used for working capital, general corporate purposes, refinancing existing debt, transaction costs, permitted acquisitions, and other permitted investments.

Interest on outstanding loans will be based on benchmark rates, including SOFR for U.S. dollar borrowings, plus a margin ranging from 1.25% to 2.00% depending on the company's total net leverage ratio.

The agreement requires Semtech to maintain a minimum interest coverage ratio of 2.50:1.00 and a maximum total net leverage ratio of 4.00:1.00, which may rise to 4.50:1.00 following a material acquisition.

Concurrently with the new agreement, Semtech terminated and repaid in full its prior credit agreement dated September 26, 2022, which had JPMorgan Chase Bank, N.A. as administrative agent.

The facility is secured by substantially all assets of Semtech and its domestic subsidiary guarantors.