Spansion Cuts Libor Floor on Exit
Flash memory device manufacturer must pay lenders a 200-basis-point closing fee
January 31, 2010
A $450 million exit loan for Sunnyvale, Calif.-based Spansion received one change before the company asked for final commitments on Thursday: the loan's Libor floor was cut to 2% from 2.5%.
Price talk on the term loan is at Libor plus 550 basis points, with an OID of 98 cents on the dollar. Barclays and Morgan Stanley are the lead banks.
The terms of the exit loan also stipulate that if Spansion repays the loan within the first year, it will have to pay lenders 101 cents on the dollar. The company also must pay lenders a 200-basis-point closing fee, according to Bloomberg.
Spansion, a manufacturer of flash memory devices, filed for Chapter 11 bankruptcy protection last March.
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