Summary
Micron Technology, Inc. (MU) announced on April 8, 2016, the initiation of a syndication process for a new $500 million Term Loan B credit facility. This facility is expected to have a six-year maturity, be secured by a significant portion of the company's assets, and carry a floating interest rate based on LIBOR plus an applicable margin. The company intends to use the proceeds from this new debt for general corporate purposes, including working capital and capital expenditures, as well as to cover associated fees and expenses. This move signals Micron's proactive approach to managing its capital structure and funding its operational and strategic initiatives.
Key Highlights
- 1Micron Technology has begun the process to secure a new $500 million Term Loan B credit facility.
- 2The proposed credit facility has a six-year maturity.
- 3The loan will be secured by a substantial portion of Micron's assets.
- 4Interest on the loan will be floating, based on LIBOR plus an applicable margin.
- 5Proceeds are earmarked for general corporate purposes, including working capital and capital expenditures.
- 6Micron may also consider issuing up to $1 billion in senior secured notes concurrently, depending on market conditions.
Frequently Asked Questions
The proceeds from the Term Loan B credit facility are intended for general corporate purposes, which include supporting working capital needs, funding capital expenditures, and covering related fees and expenses.
The credit facility is expected to be for an aggregate principal amount of $500 million with a maturity of six years. It will be secured by a substantial portion of the company's assets and will bear interest at a floating rate tied to LIBOR plus an applicable margin.
Yes, in conjunction with the Term Loan B credit facility syndication, Micron indicated it may also consider issuing up to $1 billion in aggregate principal amount of senior secured notes, subject to market conditions and other factors.
The closing is anticipated to be subject to successful syndication, negotiation and execution of definitive loan documentation, and other customary closing conditions. No specific closing date was provided.