Allegro microsystems announces allocation of increased term loan and refinancing of existing term loan

Manchester, n.h., july 31, 2024 (globe newswire) -- allegro microsystems, inc. (“allegro”) (nasdaq: algm), a global leader in power and sensing solutions for motion control and energy-efficient systems, today announced the allocation of a $400,000,000 term loan tranche (the "term loan"), consisting of new term loans incurred, in relevant part, to facilitate the repurchase of shares from allegro's majority shareholder, sanken electric co., ltd. (“sanken”), to fully refinance allegro's existing term loan facility, and otherwise for general corporate purposes. the new term loan tranche is expected to have a maturity date of october 31, 2030 and to bear interest at an annual rate based on the secured overnight financing rate (“sofr”) plus an interest rate margin of 2.25%, which annual rate represents a 0.50% per annum reduction as compared to allegro's existing term loan facility. the foregoing transactions are subject to market and other conditions, and there can be no assurance as to whether, or when, the transactions may be completed or as to the actual size or terms of the term loan.
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