Summary
Teradyne, Inc. (TER) announced on May 5, 2020, the entry into a new three-year, senior secured revolving credit facility totaling $400 million. This facility, established on May 1, 2020, with Truist Bank as the administrative agent, provides Teradyne with significant financial flexibility for general corporate purposes and working capital needs. Importantly, the company has not yet drawn any funds under this facility, indicating a proactive approach to liquidity management as of the filing date. The credit facility is secured by company assets and certain domestic subsidiaries, with specific terms regarding interest rates (based on base rate or LIBOR plus applicable margins) and commitment fees on the unused portion. The agreement includes customary covenants and financial ratio requirements (Consolidated Leverage Ratio and Interest Coverage Ratio) that Teradyne must maintain. This new credit line enhances Teradyne's financial resilience and access to capital.
Key Highlights
- 1Teradyne entered into a $400 million senior secured revolving credit facility on May 1, 2020.
- 2The credit facility has a term of three years.
- 3Proceeds are available for general corporate purposes and working capital.
- 4No funds have been borrowed under the facility as of the filing date.
- 5Interest rates are variable, based on either a base rate or LIBOR, plus applicable margins.
- 6The facility is secured by company assets and guaranteed by certain domestic subsidiaries.
- 7Customary covenants and financial ratio requirements (Consolidated Leverage Ratio, Interest Coverage Ratio) are included.