HG loans: Applied Materials inks $2B TLA for Kokusai Electric buy

Applied Materials Inc. has disclosed that on Dec. 30 it entered into an amendment that provided the company with a $2 billion, three-year term loan A facility, with proceeds from the loan earmarked to back the company’s planned acquisition of Kokusai Electric.

Pricing is tied to a ratings-based grid, at L+62.5-112.5, opening at L+87.5.

J.P. Morgan, BofA Securities, Citi, Mizuho, MUFG, U.S. Bank and Wells Fargo acted as joint lead arrangers. J.P. Morgan is administrative agent.

The loan is covered by a leverage covenant set at 3.5x.

The amendment also modifies certain terms relating to the implementation of a LIBOR replacement rate.

Applied Materials, which is rated A-/A3, provides manufacturing equipment, services and software to the semiconductor, display and related industries.