Add
NSM to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| NSM > SEC Filings for NSM > Form 8-K on 3-Mar-2009 | All Recent SEC Filings |
3-Mar-2009
Entry into a Material Definitive Agreement, Creation of a Direct Fina
On February 25, 2009, National Semiconductor Corporation (the "Company") entered into Amendment No. 1 (the "Amendment") to the Credit Agreement dated as of July 20, 2007 among the banks, financial institutions and other institutional lenders identified therein (collectively, the "Lenders") and Bank of America, N.A., as administrative Agent for the Lenders (the "Credit Agreement").
The Amendment provides that the interest rate applicable to outstanding Loans
under the Credit Agreement will be, at the Company's option, equal to either:
(1) the rate equal to (a) the London Interbank Offered Rate, or LIBOR, plus (b)
an applicable margin of between 2.25% and 3.00% depending on the Company's
public debt ratings from Moody's and S&P, or (2) a base rate equal to (a) the
greater of (i) the prime rate set by Bank of America and publicly announced as
its prime rate, (ii) the Federal Funds rate plus 0.50%, and (iii) LIBOR plus
1.25%, plus (b) an applicable margin of between 1.00% and 1.75% depending on the
Company's public debt ratings from Moody's and S&P.
The Amendment (1) reduces the minimum interest coverage ratio covenant
applicable to the Company beginning fiscal 2010 through the first fiscal quarter
2011 (June 1, 2009 through August 31, 2010), (2) increases the maximum leverage
ratio covenant applicable to the Company beginning the third fiscal quarter 2009
through the second fiscal quarter 2011 (November 30, 2008 through August 2010),
(3) clarifies the definition of consolidated adjusted EBITDA for purposes of
such covenant calculations, and (4) provides for the prepayment by the Company
on or prior to March 31, 2009 of an amount not less than $125,000,000 which
amount is to be applied pro rata to the last four installments due under the
Credit Agreement thereby reducing the installments due on each of September 30,
2011, December 31, 2011, March 31, 2012 and June, 2012 to $31,250,000 from
$62,500,000.
The information set forth under Item 1.01 of this Current Report on Form 8-K is hereby incorporated in this Item 2.03 by reference.
|
|