SUNNYVALE, Calif., Dec. 19, 2013 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems solutions, today announced that it entered into an amended term loan agreement.
As part of the amendment, Spansion reduced the interest rate on its $216 million term loan, from LIBOR+400 basis points, with LIBOR floor of 1.25% to a level of LIBOR+300 basis points, with LIBOR floor of 0.75%. In addition, the company increased its outstanding term loan amount from approximately $216 million to $300 million, of which approximately $84 million of the proceeds along with its own cash will redeem the remainder (approximately $94 million) of the 7 7/8% senior notes outstanding. Redemption of senior notes will take place in January 2014. The maturity date of the $300 million senior term loan was extended by one year to December 2019.
"We took advantage of the strength in the market to reduce our overall debt cost. We expect our interest expense to be reduced by $7.5 million annually with this repricing transaction, which is approximately $0.12 of EPS," said Randy Furr, executive vice president and CFO of Spanson. "In addition, we amended some covenants to provide greater operational flexibility. With favorable market conditions, this is the right time to do this, especially as Spansion expands its business following our acquisition of the Microcontroller and Analog business from Fujitsu."
This announcement is not an offer to purchase or solicitation of an offer to purchase or a solicitation of tenders or consents with respect to any Notes and nor shall there be any offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Spansion (NYSE: CODE) is a global leader in embedded systems solutions. Spansion's Flash memory, microcontrollers, analog and mixed-signal products drive the development of faster, intelligent, secure and energy efficient electronics. Spansion is at the heart of electronics systems, connecting, controlling, storing and powering everything from automotive electronics and industrial systems to the highly interactive and immersive consumer devices that are enriching people's daily lives. For more information, visit http://www.spansion.com
Spansion®, the Spansion logo, MirrorBit®, and combinations thereof, are trademarks and registered trademarks of Spansion LLC in the United States and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.
SOURCE Spansion Inc.