Press release
MICROCHIP TECHNOLOGY INCORPORATED ANNOUNCES NOTE EXCHANGES
CHANDLER, Arizona, March 21, 2020 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated (NASDAQ:MCHP) (“Microchip”) announced today that on March 21, 2020,
About this update from Microchip Technology Incorporated
[{"type":"text","content":"CHANDLER, Arizona, March 21, 2020 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated (NASDAQ:MCHP) (“Microchip”) announced today that on March 21, 2020, Microchip entered into separate privately-negotiated agreements with certain holders of Microchip’s outstanding 1.625% Convertible Senior Subordinated Notes due 2025 (the “Notes”) (the “Exchange Transactions”).\n Pursuant to the Exchange Transactions, Microchip has agreed to exchange $615.0 million in aggregate principal amount of the Notes and accrued and unpaid interest thereon for cash and shares of Microchip’s common stock, par value $0.001 per share (the “Common Stock”). Upon the closing of the Exchange Transactions, Microchip estimates that it will pay an aggregate of approximately $615.0 million in cash plus accrued interest and issue approximately 3.1 million shares of Common Stock for the Notes. The foregoing estimates are based on a price of $60.56 per share of Common Stock, which was the reference price used in the Exchange Transactions. The actual amounts of cash and shares of Common Stock are subject to adjustment during an averaging period beginning on March 23, 2020, and could vary substantially depending on changes in the trading price of the Common Stock during the averaging period. Microchip expects the closings of the Exchange Transactions to occur on March 27, 2020. Immediately following the closings of the Exchange Transactions, $1.11 billion in aggregate principal amount of the Notes will remain outstanding. To fund the cash portion of the Exchange Transactions, Microchip entered into a commitment letter (the “Commitment Letter”), dated as of March 21, 2020, with JPMorgan Chase Bank, N.A., Truist Bank, SunTrust Robinson Humphrey, Inc., Wells Fargo Bank, National Association, Wells Fargo Securities, LLC and BNP Paribas (the “Commitment Parties”), pursuant to which, subject to the terms and conditions set forth therein, the Commitment Parties have committed to provide a 364-day senior secured bridge term loan facility in an aggregate principal amount of $615.0 million (the “Bridge Loan”). The funding of the Bridge Loan provided for in the Commitment Letter is contingent on the satisfaction of customary conditions, including (i) the execution and delivery of definitive documentation with respect to the Bridge Loan in accordance with the terms sets forth in ...