LATTICE SEMICONDUCTOR CORP 8-K

What Happened
On June 30, 2026, Lattice Semiconductor Corporation announced it entered into a Second Amended and Restated Credit Agreement with lenders and Wells Fargo Bank, N.A. as administrative agent. The facility provides a $200.0 million senior secured revolving loan and a $950.0 million senior secured delayed-draw term loan. At closing there were no borrowings outstanding. The delayed-draw term loans, subject to conditions, may be used to fund part of the cash purchase price and related costs for Lattice’s previously announced acquisition of AMI TopCo, Inc.

Key Details

• Total facility: $1.15 billion ( $200M revolving credit; $950M delayed-draw term loan).
• Closing date: June 30, 2026; revolver and term loans mature and are due June 30, 2031.
• No amounts outstanding at closing; delayed-draw commitment expires on the earlier of Nov 9, 2026 (11:59 p.m.), funding, termination of the AMI acquisition agreement, or other specified events.
• Fees and costs: customary closing/arrangement/administration fees plus a ticking fee of 0.25% p.a. on the undrawn delayed-draw commitment until funding or termination.
• Interest: at borrower’s option either (a) base rate (prime/fed funds/1‑month SOFR + margin 0.00%–0.75%) or (b) term SOFR + margin 1.00%–1.75%; margins vary with the company’s consolidated total leverage ratio.
• Repayment/amortization for term loans: quarterly principal payments starting the first full fiscal quarter after funding — 1.250% of original principal for first 4 quarters, 1.875% for quarters 5–12, then 2.5% thereafter; remaining principal due at maturity.
• Security and guarantees: obligations guaranteed by material subsidiaries and secured by substantially all assets (subject to standard exceptions). Financial covenants include a total net leverage ratio and an interest coverage ratio, tested quarterly.

Why It Matters
This facility gives Lattice committed financing capacity to support the cash portion of the AMI acquisition and general corporate needs while replacing its prior credit agreement. Key investor considerations are the size of the debt commitment ($950M delayed term), the timing window to draw that term loan (expires Nov 9, 2026 unless funded earlier), the covenant tests (leverage and interest coverage) and the security/guarantees that back the loans. These terms will affect Lattice’s leverage profile, interest expense sensitivity (SOFR vs base rate), and liquidity planning as the company executes the AMI transaction.