Microchip Technology Incorporated (NASDAQ:MCHP), a leading provider of
microcontroller, analog and Flash-IP solutions, announced today that it
has executed a new $750 million unsecured credit agreement with a group
of lenders. Loans under this facility are expected to be used for
general corporate purposes. The agreement has an option to increase the
amount available to $1 billion and has a five-year term.
Steve Sanghi, President and CEO, said, "Microchip's strong execution and
business model have allowed us to put this revolving line of credit in
place under very favorable terms. The facility provides us with
additional flexibility to pursue our business objectives."
JP Morgan Securities and Wells Fargo Securities served as Joint
Bookrunners and Joint Lead Arrangers for this transaction.
The statement contained in this release relating to use of proceeds and
the additional flexibility to pursue our business objectives 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; 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; 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 August 18, 2011 press
release, or to reflect the occurrence of unanticipated events.
Microchip Technology Incorporated is a leading provider of
microcontroller, analog and Flash-IP solutions, providing low-risk
product development, lower total system cost and faster time to market
for thousands of diverse customer applications worldwide. Headquartered
in Chandler, Arizona, Microchip offers outstanding technical support
along with dependable delivery and quality. For more information, visit
the Microchip website at www.microchip.com.
The Microchip logo and name are registered trademarks of Microchip