Micron Technology Signs $1.6835 Billion Term Loan Agreement

Micron Technology, Inc., one of the leading semiconductor companies, announced on January 16, 2025, that it has entered into a Term Loan Credit Agreement. The agreement, signed on the closing date of January 17, 2025, involves Micron Technology, Inc. and a consortium of financial institutions, including PNC Bank, National Association, among others.

The Term Loan Agreement provides for a committed term loan facility of $1.6835 billion, which Micron Technology borrowed upon closing. The purpose of this borrowing is to repay a portion of the outstanding principal balance under a previous Term Loan Credit Agreement dated November 3, 2022. Additionally, the agreement allows Micron to potentially add incremental commitments of up to $750.0 million under certain circumstances.

This Term Loan Facility does not amortize and is set to mature on January 17, 2029. Micron Technology is required to repay the outstanding principal amount of the Term Loan along with accrued interest, fees, and other obligations on the Term Loan Facility Maturity Date. The interest rates for the borrowings under this facility are subject to adjusted term SOFR or a base rate, with varying applicable interest rate margins based on corporate ratings.

In terms of financial obligations, Micron Technology must maintain a net leverage ratio of total net indebtedness to EBITDA not exceeding 3.25 to 1.00 on a consolidated basis. Certain representations, warranties, and covenants typical for credit agreements of this nature are included in the agreement.

The Term Loan Agreement also outlines events of default, such as failure to pay, breach of covenants, or insolvency events, among others. In case of default, the outstanding amounts may become due immediately. The lenders under the Term Loan Agreement have engaged, and may continue to engage, in various commercial dealings with Micron Technology and its affiliates.

Furthermore, on the same date, Micron Technology terminated its Existing Credit Agreement dated November 3, 2022. The termination of the Existing Credit Agreement did not result in any significant early termination penalties.

In a separate development, at the Fiscal 2024 Annual Meeting of Stockholders held on January 16, 2025, Micron Technology’s stockholders approved a new equity incentive plan, the 2025 Equity Incentive Plan, to replace the company’s previous Amended and Restated 2007 Equity Incentive Plan. This new plan will see an issuance of approximately 48,575,795 shares of the Company’s common stock.

The information contained in this filing provides insights into Micron Technology’s recent financial activities and plans for the future, as disclosed in their recent SEC filing.

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

Micron Technology Company Profile

Micron Technology, Inc designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels.