Simpson Thacher represented the initial purchasers, led by J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, in connection with a Rule 144A/Regulation S offering of $1 billion aggregate principal amount of 2.67% Senior Secured Notes due 2023 by Microchip Technology Incorporated (“Microchip”). Simpson Thacher also represented the initial purchasers, led by J.P. Morgan Securities LLC, in connection with Microchip’s concurrent Rule 144A/Regulation S offering of $1.2 billion aggregate principal amount of 4.25% Senior Notes due 2025.
Microchip used a portion of the net proceeds from the concurrent offerings to repay in full the amounts outstanding under its senior secured bridge loan facility and intends to use the remaining net proceeds to finance, in part, the exchanges of approximately $1.03 billion in aggregate principal amount of its outstanding convertible senior subordinated notes due 2025 and 2027 for cash and for general corporate purposes, including the repayment of amounts outstanding under its revolving credit facility.
Microchip is a leading developer and manufacturer of specialized semiconductor products. Microchip's products serve more than 120,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets.
The Simpson Thacher team included Art Robinson, Jean Park, Camilla Johnson, Kyle Schwab and Chirag Desai (Capital Markets); Patrick Ryan, Harini Mekala and Essete Workneh (Credit); Jonathan Pall (Collateral); Lori Lesser and Alysha Sekhon (Intellectual Property); Jonathan Cantor and Zachary Fialkow (Tax); Michael Isby (Environmental); Larry Moss (ECEB); and Andrew Pagliughi (Blue Sky).