Summary
Teradyne, Inc. (TER) announced on April 7, 2009, the termination of its Credit Agreement dated November 14, 2008. This termination was a direct result of the company utilizing approximately $123.3 million from the net proceeds of its recent $190 million convertible senior notes offering to fully repay outstanding amounts under the credit facility. The terminated agreement provided for a senior secured revolving credit facility with a principal amount of $122.5 million, which was set to mature in November 2011. The specific interest rates and commitment fees outlined in the agreement, along with customary covenants related to leverage and financial ratios, are no longer applicable. This action indicates a strategic move by Teradyne to manage its debt structure and leverage its new financing.
Key Highlights
- 1Teradyne terminated its Credit Agreement dated November 14, 2008, effective April 7, 2009.
- 2The termination was funded by approximately $123.3 million from the net proceeds of a recent $190 million convertible senior notes offering.
- 3The repaid credit facility was a senior secured revolving credit facility for $122.5 million, with a maturity date of November 14, 2011.
- 4The company utilized a significant portion of the new convertible note proceeds to eliminate its outstanding debt under the previous credit agreement.
- 5The terminated agreement included specific interest rate provisions (Eurodollar rate or Base Rate plus margins) and a commitment fee on unused amounts.
- 6Customary representations, warranties, and covenants, including leverage and financial ratio requirements, were part of the terminated Credit Agreement.