Cypress Semiconductor Corp., a maker of digital and mixed-signal integrated circuits, obtained a $430 million revolving line of credit.
The five-year debt pays interest at 2.25 percentage points more than the London interbank offered rate, the company said today in a statement distributed by Business Wire. Lenders are being offered a 37.5 basis-point fee on the unused portion of the revolver. A basis point is 0.01 percentage point.
The company expects to borrow $153 million immediately and is permitted to use the proceeds for working capital, acquisitions, stock repurchases and other general corporate purposes, according to the statement.
Morgan Stanley arranged the financing for the San Jose, California-based company, according to today’s statement.
“We are pleased to secure this revolving credit facility at attractive interest rates from a core group of lenders.” Brad Buss, chief financial officer of Cypress, said in the statement. “The facility enhances Cypress’s credit profile and provides us further financial flexibility to support our long-term corporate objectives.”
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.