Key Highlights

• Lattice Semiconductor (NASDAQ: LSCC) signed a credit agreement providing a $200 million revolving loan and a $950 million term loan.

• The term loan carries a 0.25% ticking fee on any undrawn portion until funded or terminated.

• Repayment of the term loan is staged at 1.250% of principal for the first four quarters, 1.875% for quarters five through twelve, and 2.5% thereafter.

Lattice Semiconductor Corp (NASDAQ: LSCC) entered a new credit agreement on June 30 2026, establishing a revolving facility of $200 million and a delayed‑draw term loan of $950 million. Wells Fargo Bank, National Association, serves as administrative agent. The proceeds are intended to fund working capital and to finance the pending acquisition of AMI.

Credit Structure Overview

The revolving facility may be accessed for general corporate purposes, while the term loan is earmarked to cover a portion of the cash consideration for the AMI transaction and related fees. No revolving balances were outstanding at signing, and the term loan commitments will terminate at the earlier of November 9 2026, the funding date, or the completion of the AMI merger.

Cost of Undrawn Commitments

Lattice is required to pay a ticking fee of 0.25% per annum on any undrawn portion of the term loan commitment. This fee accrues from the agreement date until the earlier of the loan’s funding or its termination, adding a modest cost to the reserved capital.

Interest Rate Framework

Borrowings may be priced at a base rate defined as the greater of the prevailing prime rate, the federal funds rate plus 0.50%, or the one‑month SOFR rate plus 1.00%, plus a margin ranging from 0.00% to 0.75%. Alternatively, the company may elect a term SOFR rate for one, three, or six months, with a margin between 1.00% and 1.75%. Interest is payable quarterly in arrears.

Repayment Schedule

The term loan repayment schedule begins with quarterly installments equal to 1.250% of the outstanding principal for the first four fiscal quarters after funding. The next eight quarters require payments of 1.875% of the outstanding principal, and subsequent quarters rise to 2.5%. The remaining balance and accrued interest are due on June 30 2031.

Covenants and Guarantees

The agreement imposes quarterly tests of total net leverage and interest coverage ratios, together with standard affirmative and negative covenants. Certain subsidiaries of Lattice provide guarantees, and the loans are secured by substantially all assets of the borrower and guarantors, subject to customary exceptions.

Market Reaction and Industry Context

Following the announcement, LSCC shares climbed 6.3%, reflecting investor confidence in the added liquidity and strategic financing for the AMI transaction. The deal underscores a broader trend in the semiconductor sector, where companies are increasingly turning to structured credit facilities to fund acquisitions and sustain R&D investment amid rapid technology cycles.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.