Semtech Corporation (Nasdaq: SMTC) has announced an increase in the total borrowing capacity under its revolving credit facility by $117.5 million, bringing the total size of the facility to $455.0 million. This increase comes as part of the Fourth Amendment to its Third Amended and Restated Credit Agreement. Notably, no financial covenants or material terms were modified as part of this amendment. Additionally, the increase in capacity partially replaces borrowing capacity that matured on November 7, 2024.
Furthermore, the press release indicates that the revolving credit facility remains undrawn except for previously outstanding letters of credit totaling $2.9 million issued under the facility. Mark Lin, executive vice president and chief financial officer, expressed satisfaction with the successful execution of this amendment, highlighting that three new institutions joined the lending group to increase capacity on the revolving credit facility to $455 million.
It is also mentioned in the press release that subsequent to the revolving capacity increase, Semtech used cash flow from operations to repay $10 million on its term loan in the first quarter of fiscal year 2026, in line with its capital allocation priority to reduce leverage.
Semtech Corporation, a leading provider of high-performance semiconductor, Internet of Things (IoT) systems and cloud connectivity service solutions, remains committed to delivering high-quality technology solutions that enable a smarter, more connected, and sustainable planet. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $30.04. For the full picture, make sure to review Semtech's 8-K report.
