**Microchip Technology Completes $2 Billion Senior Notes Offering**

Microchip Technology Incorporated recently concluded a significant financial transaction on December 11, 2024, by issuing $1 billion worth of 4.900% Senior Notes due in 2028 and $1 billion worth of 5.050% Senior Notes due in 2030. This public offering, totaling around $1,992,170,000 in net proceeds after underwriters’ discount deductions, was made under the Company’s shelf registration statement on Form S-3 (No. 333-277512) filed with the Securities and Exchange Commission earlier in February 2024.

The proceeds from this offering will be utilized to repay the Company’s senior term loan facility, address a portion of the outstanding debt under the commercial paper program, and cover fees and expenses linked to the Notes’ offering. The Notes distributed are under the governance of the Indenture, which includes the Base Indenture from February 29, 2024, and the Second Supplemental Indenture from December 16, 2024. These agreements involve the Company, specified Subsidiary Guarantors, and the Trustee, Computershare Trust Company, National Association.

The 2028 Notes are set to mature on March 15, 2028, while the 2030 Notes will mature on February 15, 2030. Interest payments for these Notes will be made semi-annually in arrears starting in 2025.

Concerning potential redemptions, the Company reserves the right to redeem either series of Notes at its discretion. Depending on the timing, redemption prices will fluctuate accordingly. In the case of a change of control repurchase event, the Company is obligated to offer repurchases at a price of 101% of the aggregate principal amount of the Notes in question.

The Indenture also features specific affirmative and negative covenants for the Company, with restrictions on incurring liens on Property, engaging in sale and lease-back transactions, and consolidating or merging assets. The Notes are and will be guaranteed by existing and future Subsidiary Guarantors under the Senior Credit Facilities.

Additionally, the Company issued and sold these Notes through an underwriting agreement with J.P. Morgan Securities LLC, BofA Securities, Inc., and Wells Fargo Securities, LLC, among others. The Notes were sold to the Underwriters at specific prices, with the public offered slightly differing rates.

This financial development has been documented in various filings, including the Underwriting Agreement, the Second Supplemental Indenture, and forms of Global Note representing each series of Notes. Microchip Technology has ensured compliance by providing legal opinions and necessary consents linked to the offering.

Overall, these recent financial activities indicate an important step for Microchip Technology as it manages its debt obligations and capital structure effectively.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Microchip Technology’s 8K filing here.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.