Semtech Corporation (Nasdaq: SMTC), a leading supplier of analog and
mixed-signal semiconductors, today announced it has executed a new
credit agreement consisting of a senior secured term loan facility in
the principal amount of $150 million and a $250 million senior secured
revolving credit facility. This new credit agreement replaces the
existing $350 million credit facility. Based on current LIBOR rates, the
after tax interest rate will be approximately 1.3 percent, which is
approximately half the rate associated with the existing facility.
Emeka Chukwu, Semtech’s Senior Vice President, Finance and Chief
Financial Officer, stated: “Our solid financial performance, driven by
our diversified and balanced business model, has allowed us to take
advantage of the favorable borrowing environment to meaningfully reduce
our borrowing costs while enhancing our operational flexibility.”
Second quarter 2014 GAAP earnings will be impacted by approximately $8.7
million in non-cash costs associated with the early retirement of the
existing long term debt.
About Semtech
Semtech Corporation is a leading supplier of analog and mixed-signal
semiconductors for high-end consumer, computing, communications and
industrial equipment. Products are designed to benefit the engineering
community as well as the global community. The company is dedicated to
reducing the impact it, and its products, have on the environment.
Internal green programs seek to reduce waste through material and
manufacturing control, use of green technology and designing for
resource reduction. Publicly traded since 1967, Semtech is listed on the
NASDAQ Global Select Market under the symbol SMTC. For more information,
visit http://www.semtech.com.
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Semtech and the Semtech logo are marks of Semtech Corporation.
