SMART Global Holdings completed refinancing transactions via a $275 million Term Loan A Facility and a $250 million undrawn Revolving Credit Facility. Citizens Bank lead the transaction with Santander Bank and Fifth Third Bank acting as Joint Lead Arrangers.

“These refinancings are another step forward in the transformation of SGH and provide additional liquidity for the Company while also extending our overall debt maturities,” said Ken Rizvi, Chief Financial Officer. “The deal was meaningfully over-subscribed, allowing us to upsize from the original contemplated amount. We believe the strong demand reflects the recognition by the credit market of the significant strides we have made in executing our diversification and growth strategy.”

The transactions refinance and replace the $125 million CreeLED Purchase Price Note due 2023, the $100 million Asset-Based Lending Credit Facility due 2023 and the $50 million Amended Credit Agreement due 2025. For reference, as of the end of the first fiscal quarter of 2022, the Company had $35 million outstanding on the Asset-Based Lending Credit Facility and no amounts outstanding on the Amended Credit Agreement. The $250 million 2.25% Convertible Senior Notes due 2026 and the FINEP Credit Facility due 2027 will remain in place.

The Credit Facilities provide the Company with the flexibility to retire any earn-out liability associated with the CreeLED purchase. For reference, the carrying value of the earn-out liability was $77.7 million as of the end of the first fiscal quarter of 2022.

The Credit Facilities mature in 2027. Interest on the Credit Facilities will be based on a Total Net Leverage grid, but will initially bear interest at the Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment plus 2.00%.