Microchip Technology Closes $2.0 Billion Credit Agreement

  Microchip Technology Closes $2.0 Billion Credit Agreement

Business Wire

CHANDLER, Ariz. -- June 27, 2013

Microchip Technology Incorporated (NASDAQ:MCHP), a leading provider of
microcontroller, mixed-signal, analog and Flash-IP solutions, announced today
that it has executed a new $2.0 billion unsecured credit agreement with a
group of lenders with $1.65 billion of such amount being a revolving loan
facility and $350 million being a term loan. Borrowings under this facility
are expected to be used for general corporate purposes including potential
acquisition activity. The agreement has a five year term and an option to
increase the amount available to $2.3 billion. The agreement replaces the $750
million unsecured credit agreement that Microchip previously had in place.

Steve Sanghi, President and CEO, said, “Microchip’s strong execution and
business model have allowed us to put this credit agreement in place under
what we believe are very favorable terms. The facility provides us with
additional flexibility to pursue our business objectives with minimal
immediate income statement impact based on our current level of borrowing

JP Morgan Securities LLC, Wells Fargo Securities, LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, HSBC Bank USA, National Association and US Bank
National Association served as Joint Bookrunners and Joint Lead Arrangers for
this transaction.

Cautionary Statement:

The statements contained in this release relating to the use of proceeds of
the credit facility and the additional flexibility to pursue our business
objectives with minimal immediate income statement impact are forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements involve risks and
uncertainties that could cause actual results to differ materially, including,
but not limited to: the timing and amount of any loans under the facility, our
ability to comply with the covenants and other terms of the facility, our
ability to identify and execute on our business objectives including suitable
acquisition opportunities; our other needs for capital to fund our business or
for any acquisitions we may make; our balance of cash and investments and cash
flows from our business and whether such balances and cash flows are in the
U.S. or offshore; disruptions in the credit markets and general economic,
industry or political conditions in the United States or internationally. For
a detailed discussion of these and other risk factors, please refer to
Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms
10-K and 10-Q and other relevant documents for free at Microchip’s website
(www.microchip.com) or the SEC's website (www.sec.gov) or from commercial
document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date such statements
are made. Microchip does not undertake any obligation to publicly update any
forward-looking statements to reflect events, circumstances or new information
after this June 27, 2013 press release, or to reflect the occurrence of
unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of microcontroller,
mixed-signal, analog and Flash-IP solutions, providing low-risk product
development, lower total system cost and faster time to market for thousands
of diverse customer applications worldwide. Headquartered in Chandler,
Arizona, Microchip offers outstanding technical support along with dependable
delivery and quality. For more information, visit the Microchip website at

The Microchip logo and name are registered trademarks of Microchip Technology


Investor Relations Contact:
Microchip Technology Incorporated
J. Eric Bjornholt, CFO, (480) 792-7804
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