Press release
Microchip Technology Announces Offerings of Senior Secured Notes and Senior Notes
CHANDLER, Ariz., May 26, 2020 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated (NASDAQ: MCHP) (“Microchip,” “we” or “our”) announced today that it has
About this update from Microchip Technology Incorporated
[{"type":"text","content":"CHANDLER, Ariz., May 26, 2020 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated (NASDAQ: MCHP) (“Microchip,” “we” or “our”) announced today that it has commenced offerings of $1.0 billion in aggregate principal amount of senior secured notes (the “Senior Secured Notes”) and $1.2 billion in aggregate principal amount of senior notes (the “Senior Notes” and, together with the Senior Secured Notes, the “Notes”). Microchip intends to use the net proceeds from offering of the Senior Secured Notes to repay in full all amounts outstanding under its senior secured bridge loan facility and to use the remainder of such net proceeds, together with the net proceeds from the offering of Senior Notes and cash on hand, to finance the cash portion of the consideration it will deliver in connection with exchanges of its outstanding 1.625% Convertible Senior Subordinated Notes due 2025 (the “2025 Notes”) and its outstanding 1.625% Convertible Senior Subordinated Notes due 2027 (the “2027 Notes”), for cash, which Microchip anticipates will be up to approximately $1.6 billion in the aggregate, representing the principal amount exchanged and accrued and unpaid interest thereon, and shares of Microchip’s common stock, representing the conversion value in excess of the principal amount of such notes, in privately negotiated transactions with certain holders of such 2025 Notes and 2027 Notes. Any remaining net proceeds from the offering of the Notes, if any, will be used for general corporate purposes, which may include the repayment of a portion of the amounts outstanding under Microchip’s revolving credit facility. There can be no assurance that the proposed offerings of the Notes will be completed or that any of the exchanges of 2025 Notes or 2027 Notes will be consummated. The closing of the offering of the Senior Secured Notes is not contingent upon the closing of the offering of Senior Notes and the closing of the Senior Notes is not contingent upon the closing of the offering of the Senior Secured Notes. \n Both the Senior Secured Notes and the Senior Notes will be guaranteed on a joint and several basis by certain of Microchip’s subsidiaries (the “guarantors”) that guarantee obligations under Microchip’s term loan facility and revolving credit facility (collectively, the “senior credit facilities”) as well as our outstanding 3.922% Senior S...