Vishay Intertechnology, Inc. (NYSE: VSH) today announced that it has entered into an amended and restated $640 million credit facility. The senior secured facility matures on August 8, 2018. The Company’s original $528 million revolving credit facility was scheduled to mature on December 1, 2015.
Except for the term, size, and pricing, the amended and restated credit facility is substantially similar to the original credit agreement.
The amended and restated credit facility also removes certain restrictions related to the incurrence and repayment of certain intercompany indebtedness, mergers, liquidations, and transfers of ownership of wholly owned subsidiaries. These changes enable the Company to streamline its complex subsidiary structure and provide greater operating flexibility.
Borrowings under the amended and restated facility will bear interest at LIBOR plus an interest margin. The applicable interest margin is based on Vishay’s leverage ratio. Based on Vishay’s current leverage ratio, borrowings bear interest at LIBOR plus 1.75%; Vishay is also required to pay a facility fee of 0.35% per annum on the entire commitment amount for a total borrowing cost, also based on current leverage, of LIBOR plus 2.10% for the outstanding amount under the amended and restated credit facility. The interest rate under the original facility was at LIBOR plus 2.25% plus a facility commitment fee of 0.35% per annum on the entire commitment amount for a total of LIBOR plus 2.60% for the outstanding amount.Lori Lipcaman, Vishay’s Chief Financial Officer said, “We are pleased to capitalize on favorable credit market conditions to increase the amount available to us under our credit facility to $640 million. We received commitments in excess of our targeted amount. The amended credit facility extends the term of our available credit, secures lower interest rates than we are currently paying for the next five years, and provides us with additional financial flexibility to pursue our growth plan.”