Vishay Intertechnology, Inc. entered into a new $750 million credit facility.  The senior secured facility matures on June 5, 2024.  The new credit facility replaces a previous credit agreement that provided for an aggregate commitment of $640 million, and that was scheduled to mature on December 10, 2020.

Borrowings under the new credit facility bear interest at LIBOR plus an interest margin.  The applicable interest margin is based on Vishay's leverage ratio.  Based on Vishay's current leverage ratio, borrowings bear interest at LIBOR plus 1.50%, the same as pursuant to the previous credit agreement.  Vishay also pays a commitment fee, also based on its leverage ratio, on undrawn amounts.   The undrawn commitment fee, based on Vishay's current leverage ratio, is 0.25% per annum, an improvement of 5 basis points over the previous credit agreement.

The new credit facility allows an unlimited amount of defined “Investments,” which include certain intercompany transactions and acquisitions, provided the Company's pro forma leverage ratio is equal to or less than 2.75 to 1.00.  If the Company's pro forma leverage ratio is greater than 2.75 to 1.00, such Investments are subject to certain limitations.

The new credit facility also allows an unlimited amount of defined "Restricted Payments," which include cash dividends and share repurchases, provided the Company's pro forma leverage ratio is equal to or less than 2.50 to 1.00.  If the Company's pro forma leverage ratio is greater than 2.50 to 1.00, the new credit facility allows such payments up to $100 million per annum (subject to a cap of $300 million for the term of the facility, with up to $25 million of any unused amount of the $100 million per annum base available for use in the next succeeding calendar year).

Lori Lipcaman, Vishay's Chief Financial Officer said, "Our new credit facility will provide us with significant financial and operating flexibility."

JPMorgan Chase Bank, N.A. acted as administrative agent. JP Morgan Chase Bank, N.A.; Comerica Bank; Citizens Bank, N.A.; HSBC Bank USA, National Association; and UniCredit Bank AG served as joint lead arrangers and joint bookrunners.  Comerica Bank; Citizens Bank, N.A.; HSBC Bank USA, National Association; and UniCredit Bank AG served as co-syndication agents.  Santander Bank, National Association; TD Bank, N.A.; MUFG Bank, Ltd.; and KBC Bank N.V. functioned as co-documentation agents.