Key Highlights

• Analog Devices (NASDAQ: ADI) signed a revolving credit agreement capped at $3.0 billion, maturing in July of the following year.

• A conversion option to a non‑amortizing term loan carries a fee of 0.50% on the amount converted.

• Interest margins are set between 0.48% and 0.925% over Term SOFR, with a facility fee of 0.020% to 0.075% on outstanding commitments.

• The company must maintain an EBITDA‑to‑interest ratio of at least 3.00 to 1.00 each fiscal quarter.

Analog Devices Inc. (NASDAQ: ADI) disclosed that it has completed a revolving credit agreement with a group of leading banks. The facility provides liquidity up to $3.0 billion and remains in effect until July of the following year, with an option to extend on an annual basis.

Facility Size and Structure

The credit line is limited to an aggregate principal amount not exceeding $3.0 billion. Bank of America, N.A. Acts as administrative agent, while Citibank, JPMorgan Chase Bank, Morgan Stanley Senior Funding, Barclays Bank PLC and BNP Paribas Securities serve as co‑documentation agents and joint lead arrangers.

Conversion Feature

Prior to the initial maturity date, Analog Devices may elect to convert part or all of the outstanding balance into a non‑amortizing term loan.

Interest Rate Mechanics

Borrowings may be priced off Term SOFR or other currency benchmarks. Loans tied to Term SOFR accrue interest at Term SOFR plus a margin that varies between 0.48% and 0.925%, reflecting the company’s debt rating at each measurement date. Loans based on a base rate are charged at the base rate itself.

Facility Fee and Multi‑Currency Access

In addition to interest, the agreement imposes a facility fee calculated on the daily amount of commitments in effect. This fee ranges from 0.020% to 0.075% per annum and is linked to the company’s current debt rating. The facility allows borrowing in U.S.

Dollars, euros, pounds sterling, and other approved currencies.

Covenant Requirements

The agreement includes standard representations, warranties and covenants. A principal financial covenant requires Analog Devices to uphold a consolidated EBITDA‑to‑consolidated interest charge ratio of at least 3.00 to 1.00 each fiscal quarter, beginning with the first quarter after the closing date. Additional covenants limit the company’s ability to incur liens, merge, or undergo major restructuring without lender consent.

Flexibility and Prepayment

Analog Devices can prepay any portion of the facility without penalty, though lenders may be reimbursed for breakage and redeployment costs. The company may also voluntarily reduce the unutilized portion of the commitment without incurring fees. However, increases to the total credit commitment are not permitted under the terms of the agreement.

The new facility strengthens Analog Devices’ balance sheet and provides flexibility to support ongoing investments in high‑performance analog and mixed‑signal solutions, a sector that continues to benefit from expanding demand in automotive, industrial and communications markets.

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