Summary
Analog Devices, Inc. (ADI) has entered into a new 364-day revolving credit facility totaling $3.0 billion, providing significant liquidity and financial flexibility. This agreement, effective July 2, 2026, is with Bank of America, N.A. as Administrative Agent and a syndicate of lenders. The facility allows for multi-currency borrowings and offers the option to convert outstanding loans to a non-amortizing term loan one year post-closing, subject to certain conditions and a fee. The credit agreement includes provisions for annual extensions, prepayments without penalty, and voluntary reductions in commitment. It also allows for the designation of foreign subsidiaries as borrowers, with ADI providing guarantees. The terms of the facility are tied to ADI's Debt Ratings, influencing interest rates and facility fees. Standard covenants, representations, warranties, and events of default are included, along with a financial covenant requiring a minimum consolidated EBITDA to consolidated interest charges ratio of 3.00 to 1.00.
Key Highlights
- 1ADI has secured a $3.0 billion, 364-day revolving credit facility to enhance liquidity and financial flexibility.
- 2The new facility, effective July 2, 2026, has an initial maturity date of July 1, 2027, with provisions for annual extensions.
- 3Borrowings can be made in U.S. dollars, euros, pounds sterling, and other approved currencies, offering multi-currency flexibility.
- 4The company has the option to convert outstanding loans to a non-amortizing term loan one year after closing, subject to conditions and a 0.50% fee.
- 5The credit agreement allows for prepayments and voluntary commitment reductions without penalty, though lenders' breakage costs may apply.
- 6A key financial covenant requires ADI to maintain a consolidated EBITDA to consolidated interest charges ratio of at least 3.00 to 1.00.
- 7The facility includes provisions for designating foreign subsidiaries as borrowers, with ADI providing guarantees for their obligations.