Narrative
Full Description
Project narrative
On May 21, 2021, financial close was reached on a deal in which a syndicate of 16 banks—including the Bank of China (Los Angeles Branch)—entered into a $1 billion USD syndicated loan agreement with Skyworks Solutions, Inc., a Delaware-based multinational corporation specializing in analog semiconductors. The maturity of the loan is three years, and the interest rate is based on LIBOR plus an applicable margin. The proceeds were used by the borrower for the acquisition of Infrastructure & Automotive Business of Silicon Labs. While the Bank of China (Los Angeles Branch) contributed to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A.; Bank of America, N.A.; BNP Paribas; Citibank, N.A.; Goldman Sachs Bank USA; MUFG Bank, Ltd.; Truist Bank; Wells Fargo Bank, N.A.; Barclays Bank PLC; Mizuho Bank, Ltd.; DBS Bank Ltd.; Fifth Third Bank, National Association; HSBC Bank USA, National Association; Oversea-Chinese Banking Corporation Limited; and U.S. Bank National Association. On July 26, 2021, the qcquisition was completed. On March 6, 2023, the borrower and lenders entered into 1st amedment in which they changed the reference tenor to SOFR plus 0.1% adjustment spread.
Staff comments
1. Skyworks Solutions, Inc., headquartered in Irvine, California, designs and manufactures semiconductor products used in various industries, including telecommunications, automotive, and IoT applications. The company plays a pivotal role in enabling connectivity and is a leading provider in its sector. 2. AidData estimates the interest rate by adding the 6-month average LIBOR rate in May 2021 and an applicable margin based on credit ratings (1% or BBB+). 3. The individual contributions of the 16 lenders to this $1 billion USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of the Bank of China by assuming equal distribution among the lenders, resulting in an estimated $62.5 million USD contribution.