July 2, 2012 – BUSINESS WIRE — Cypress Semiconductor Corp. (NASDAQ:CY) entered into a 5-year senior secured revolving credit facility with a group of lenders led by Morgan Stanley Senior Funding, Inc. as administrative agent and collateral agent. The facility enables the company to borrow up to $430 million on a revolving basis.
CY expects to draw down a total of $153 million immediately and is permitted to use the borrowings for working capital, acquisitions, stock repurchases and other general corporate purposes.
Cypress Semiconductor is currently engaged in an acquisition offer for competitor Ramtron International Corporation (NASDAQ:RMTR), which makes ferroelectric random access memory (FRAM, sometimes called FeRAM). Cypress makes static random access memory (SRAM). CY increased its offer for Ramtron by $0.20/share recently.
The credit facility bears interest at LIBOR plus 2.25 percent on the drawn amount. There is a commitment fee payable of 0.375 percent per annum on any undrawn amounts. The credit facility contains customary affirmative, negative and financial covenants for similarly rated companies. More detailed information about the credit facility is contained in the Form 8-K to be filed by the Company.
Brad Buss, Executive Vice President of Finance and CFO for Cypress. “The facility enhances Cypress’s credit profile and provides us further financial flexibility to support our long-term corporate objectives.”
Cypress delivers high-performance, mixed-signal, programmable semiconductors, USB controllers, SRAM memories. Cypress trades on the NASDAQ Global Select Market under the ticker symbol CY. Visit Cypress online at www.cypress.com.