Allegro MicroSystems Announces Allocation of Increased Term Loan and Refinancing of Existing Term Loan
July 31 2024 - 4:40PM
Allegro MicroSystems, Inc. (“Allegro”) (Nasdaq: ALGM), a global
leader in power and sensing solutions for motion control and
energy-efficient systems, today announced the allocation of a
$400,000,000 term loan tranche (the "Term Loan"), consisting
of new term loans incurred, in relevant part, to facilitate the
repurchase of shares from Allegro’s majority shareholder, Sanken
Electric Co., Ltd. (“Sanken”), to fully refinance Allegro’s
existing term loan facility, and otherwise for general corporate
purposes. The new term loan tranche is expected to have a maturity
date of October 31, 2030 and to bear interest at an annual rate
based on the Secured Overnight Financing Rate (“SOFR”) plus an
interest rate margin of 2.25%, which annual rate represents a 0.50%
per annum reduction as compared to Allegro’s existing term loan
facility. The foregoing transactions are subject to market and
other conditions, and there can be no assurance as to whether, or
when, the transactions may be completed or as to the actual size or
terms of the Term Loan.
Morgan Stanley, Barclays, UBS, Bank of America, JPMorgan, Mizuho
and SMBC are acting as joint lead arrangers and book-runners for
the Term Loan.
PJT Partners is acting as financial advisor to Allegro.
About Allegro MicroSystems
Allegro MicroSystems, Inc. is a leading global designer,
developer, fabless manufacturer and marketer of sensor integrated
circuits (“ICs”) and application-specific analog power ICs enabling
emerging technologies in the automotive and industrial markets.
Allegro’s diverse product portfolio provides efficient and reliable
solutions for the electrification of vehicles, automotive ADAS
safety features, automation for Industry 4.0 and power-saving
technologies for data centers and clean energy applications.
About Sanken
Sanken’s mission as a company is to provide optimal solutions in
the broad and expansive field of electricity and electronics with
semiconductors, its core business, power electronics and peripheral
fields. Sanken provides products globally for the increasingly
electrified automotive industry, as well as for white goods and
industrial equipment, which are becoming more energy efficient as
demand for electricity increases. Sanken Electric works to
constantly innovate its technological capabilities and provides
products of assured quality to help solve global environmental and
social issues and further develop industry, the economy and
culture.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including statements regarding the
allocation of the Term Loan, the refinancing of existing term loans
and the repurchase of shares from Sanken, each as described above.
These forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees,
but involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to, the
factors discussed under the caption “Risk Factors” in our Annual
Report on Form 10-K for the fiscal year ended March 29, 2024, filed
with the SEC on May 23, 2024, and our other filings with the SEC,
any of which could cause actual results to differ materially from
those indicated by the forward-looking statements made in this
press release. Any such forward-looking statements represent
management’s estimates as of the date of this press release. While
we may elect to update such forward-looking statements at some
point in the future, we disclaim any obligation to do so, even if
subsequent events cause our views to change, except as required by
law. These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
Contact:Jalene HooverVP of Investor Relations
& Corporate Communications+1 (512)
751-6526jhoover@allegromicro.com
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