Summary
Teradyne, Inc. (TER) has filed an 8-K report detailing two significant events on November 14, 2008: the completion of its acquisition of Eagle Test Systems, Inc. and the entry into a new credit agreement. The acquisition of Eagle Test was finalized for approximately $250 million in cash, net of cash acquired. This strategic move aims to expand Teradyne's capabilities in the semiconductor test market.
Key Highlights
- 1Completed the acquisition of Eagle Test Systems, Inc. for approximately $250 million in cash.
- 2Entered into a $122.5 million senior secured revolving credit facility.
- 3Borrowed $100 million under the new credit facility on the closing date.
- 4Proceeds from the credit facility and cash on hand will finance the Eagle Test acquisition, working capital, and general corporate purposes.
- 5The credit facility has a maturity date of November 14, 2011.
- 6Interest rates on the credit facility are based on Eurodollar Rate or Base Rate plus a margin, varying with Teradyne's Consolidated Leverage Ratio.
- 7The credit facility includes customary representations, warranties, affirmative and negative covenants, and events of default.