Applied Materials (NASDAQ:AMAT) shares rose 1.3% in premarket trading on Monday as the semiconductor equipment firm disclosed a new $2B credit facility with Bank of America.
Interest on the 364-day credit facility will be equal to “either the secured overnight financing rate (‘Term SOFR’) for the selected interest period, plus the applicable margin, which will range from 0.50% to 1.00% depending on Applied’s public debt credit ratings; or a rate equal to the highest of a rate that is 0.50% higher than the federal funds effective rate (as the Federal Reserve Bank of New York shall set forth on its public website); the rate publicly announced by the Administrative Agent as its prime rate; Term SOFR for a one-month interest period plus 1.0%, and 1.0%,” the company said in a filing with the Securities and Exchange Commission.
Proceeds from the credit facility will be used for general corporate purposes.
