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SUBSEQUENT EVENT
6 Months Ended
Mar. 29, 2015
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Event

On March 17, 2015, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with LLIU100 Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Microsemi ("Purchaser"), and Vitesse Semiconductor Corporation, a Delaware corporation ("Vitesse"), pursuant to which Purchaser commenced a cash tender offer to purchase all of the outstanding shares of common stock, par value $0.01 per share, of Vitesse at a purchase price of $5.28 per share, net to the tendering stockholder in cash, without interest and less any required withholding taxes. The offer expired at 12:00 midnight at the end of April 27, 2015. Following the consummation of the offer, on April 28, 2015, pursuant to the terms and conditions of the Merger Agreement, Purchaser merged with and into Vitesse, with Vitesse surviving as a wholly owned subsidiary of Microsemi and changing its name to Microsemi Communications, Inc. We obtained the required funds for the Offer and the Merger and related expenses from incremental credit facilities under the Amended Credit Agreement (as described below) and existing cash balances. The aggregate consideration paid to stockholders of Vitesse by Microsemi in the Offer and Merger was approximately $368.0 million, without giving effect to related transaction fees and expenses. We expect to present a preliminary allocation of the fair value of acquired asset and liabilities in our next quarterly filing on Form 10-Q.
On March 31, 2015, we entered into Amendment No. 6 to our existing Amended and Restated Credit Agreement dated as of October 13, 2011, (such Amended and Restated Credit Agreement as further amended and supplemented prior to March 31, 2015, the "Existing Credit Agreement; and as amended by Amendment No. 6, the “Amended Credit Agreement"), with Bank of America, N.A., as administrative agent and collateral agent. Pursuant to the Existing Credit Agreement, certain lenders provided senior secured first lien credit facilities, consisting of a term loan facility and a revolving credit facility. Amendment No. 6 provided for, among other things, (1) certain amendments to the provisions relating to incremental credit facilities to (i) permit up to $325.0 million of incremental term loan facilities to be in the form of term A loans, and (ii) permit the incremental revolving commitment capacity to be increased by the amount of all prior voluntary terminations of revolving commitments, (2) an amendment to the definition of “change of control” in the Existing Credit Agreement to remove the “continuing director” prong (clause (b)) from such defined term, and (3) certain amendments related to the proposed acquisition of Vitesse Semiconductor Corporation. In connection with Amendment No. 6, Bank of America, N.A., replaced Royal Bank of Canada as administrative agent and as collateral agent under the Amended Credit Agreement.
On April 15, 2015, we syndicated an incremental term A loan of $325.0 million and incremental revolving commitments of $225.0 million, each maturing in August 2019. Beginning with the quarter ending September 27, 2015, and each quarter thereafter, we are required to make quarterly principal payments of $8.1 million on term loan A borrowings. The incremental term A loans and incremental revolving commitments initially bear interest at an interest rate margin of 2.00% for Eurodollar Rate loans and 1.00% for Base Rate loans, and the incremental revolving commitments are subject to an undrawn commitment fee of 0.35%. The interest rate margins and commitment fee are subject to step-downs based on our Consolidated Leverage Ratio.
On April 28, 2015, we borrowed $325.0 million under incremental term loan facilities and $100.0 million under incremental revolving commitments to fund the Vitesse acquisition and for general corporate purposes. The initial interest rate under these incremental loans is 2.14%.