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 activity.” 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.