ALLEGRO MICROSYSTEMS, INC. 8-K

What Happened Allegro MicroSystems, Inc. announced on January 21, 2026 that it entered into Amendment No. 4 to its Credit Agreement, creating a new $285 million tranche of term loans to refinance the outstanding Amendment No. 3 term loans. The amendment names Morgan Stanley Senior Funding, Inc. as Administrative Agent and updates the company’s existing credit facility terms.

Key Details

• Amendment effective January 21, 2026 to the Credit Agreement originally dated June 21, 2023.
• New term loan tranche: $285 million, maturing October 31, 2030.
• Amortization: 0.00% per annum (bullet repayment at maturity).
• Interest (company’s choice of): (a) Term SOFR + 1.75% OR (b) the highest of (i) Federal funds rate + 0.50%, (ii) prime rate, or (iii) one‑month Term SOFR + 1.00%, plus 0.75%.
• Proceeds will be used to (i) refinance all outstanding Amendment No. 3 term loans, (ii) pay related fees and expenses, and (iii) for general corporate purposes.

Why It Matters This amendment extends Allegro’s debt maturity profile to late 2030 and replaces prior term debt with a new $285M tranche, which may improve near‑term cash flow because the loan has no scheduled principal amortization before maturity. The interest terms expose the company to floating rate benchmarks (Term SOFR or alternate base rates) plus defined spreads, so future interest expense will depend on market rates. Investors should note the company has formalized this refinancing in its credit agreement, which represents a material change to its financing structure.