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MICRON TECHNOLOGY INC 8-K Report, Material Agreement (May 17, 2021)

Reports
Material Agreements·Financial Events
Filing Date
Filed May 17, 2021
Period End
May 14, 2021
Security
MU
In the record · 2016–202610-K1110-Q348-K171

MU filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 171 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’18Jul ’18
  2. Leadership change8-K · Aug ’20Aug ’20
  3. Restructuring8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed May 17, 2021. Cited figures are marked; the original filing is the authoritative source.

Micron Technology, Inc. (MU) announced on May 17, 2021, the entry into new material definitive agreements related to its credit facilities.

Specifically, the company entered into a new $2.5 billiona revolving credit facility and a new $1.1875 billion term loan facility, while simultaneously terminating its existing credit agreement. The revolving credit facility matures on May 14, 2026, and the term loan facility matures on October 30, 2024. The proceeds from these facilities are intended for general corporate purposes and to repay existing term debt.

These new credit agreements reflect an update to Micron's financing structure, providing continued access to liquidity. Notably, both new facilities are unsecured, offering flexibility.

The revolving credit facility includes provisions for incremental increases of up to $1 billionb, subject to lender agreement and leverage ratio compliance. Both agreements also incorporate sustainability-linked pricing adjustments, where interest rates and fees can be favorably or unfavorably impacted by the achievement of specific environmental and social targets, underscoring Micron's commitment to ESG initiatives.

02—Key points

Key Highlights

  1. Entry into a new $2.5 billion revolving credit facility maturing in May 2026.
  2. Establishment of a new $1.1875 billion term loan facility maturing in October 2024.
  3. Termination of the existing credit agreement without material early termination penalties.
  4. New facilities are unsecured, providing financial flexibility.
  5. The revolving credit facility allows for potential increases of up to $1 billion.
  6. Both new credit agreements feature sustainability-linked pricing adjustments tied to ESG targets.
  7. Proceeds from the new facilities are designated for general corporate purposes and repayment of existing term loans.

03—Questions

Frequently Asked Questions

  1. What is the total value of the new credit facilities secured by Micron?

    Micron has secured a $2.5 billion revolving credit facility and a $1.1875 billion term loan facility, totaling $3.6875 billion in new credit capacity.

  2. What are the maturity dates for the new credit facilities?

    The revolving credit facility has a maturity date of May 14, 2026, and the term loan facility matures on October 30, 2024.

  3. Are the new credit facilities secured or unsecured?

    Both the new revolving credit facility and the term loan facility are unsecured, which generally provides greater financial flexibility for the company.

  4. How do the sustainability targets affect Micron's borrowing costs?

    The interest rate margins and commitment fees on both facilities are subject to upward or downward adjustments (up to 0.05% for interest rates and 0.01% for commitment fees) based on Micron's performance in achieving specific sustainability targets related to greenhouse gas emission intensity reduction, RBA audit scores, and waste diversion from landfills.

04—Continue

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