Veeco Announces New $150 Million Senior Secured Credit Facility
Veeco Instruments Inc. (NASDAQ: VECO) announced a new senior secured revolving credit facility allowing borrowings of up to $150 million over five years, set to expire in December 2026. The facility enhances liquidity and financial flexibility, although there are currently no plans to draw from it. Interest rates will vary based on the company's secured net leverage ratio, with a yearly commitment fee for unused amounts. HSBC Bank USA acts as the administrative agent, joined by Barclays, Santander, Citibank, and Silicon Valley Bank as lenders.
- Secured a $150 million revolving credit facility, enhancing liquidity.
- The facility offers favorable interest rates linked to the company's secured net leverage ratio.
- Company has no immediate plans to utilize the facility, which could imply a lack of immediate growth opportunities.
PLAINVIEW, N.Y., Dec. 16, 2021 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (“Veeco”) (NASDAQ: VECO) today announced that it has entered into a senior secured revolving credit facility (the “Facility”). The Facility enables the company to borrow up to
“We are pleased to secure a
The company has no immediate plans to draw down on the Facility. Interest expense under the Facility is variable based on the company’s secured net leverage ratio and is expected to bear interest based on SOFR plus a range of 150 to 225 basis points, if drawn. There is a yearly commitment fee of 25 to 35 basis points, based on the company’s secured net leverage ratio, charged on the unused portion of the Facility.
HSBC Bank USA, N.A. is acting as administrative agent and collateral agent. HSBC Bank, N.A. along with, Barclays Bank PLC, Santander Bank, N.A., and Citibank, N.A. served as joint lead arranger and joint bookrunner on the Facility with Silicon Valley Bank as an additional lender.
Morrison & Foerster LLP acted as counsel to Veeco.
About Veeco
Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our proven ion beam, laser annealing, lithography, MOCVD and single wafer etch & clean technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.
Forward-looking Statements
This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding the Facility and Veeco’s plans with respect to borrowings under the Facility. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; the effects of regional or global health epidemics, including the effects of the COVID-19 pandemic on the Company’s operations and on those of our customers and suppliers; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
Veeco Contacts:
| Investors: | Anthony Bencivenga | (516) 252-1438 | abencivenga@veeco.com |
| Media: | Kevin Long | (516) 714-3978 | klong@veeco.com |
FAQ
What is the significance of Veeco's new credit facility?
Who are the lenders involved in Veeco's credit facility?
What are the interest rates on Veeco's new facility?
When does Veeco's credit facility expire?
Is Veeco planning to draw from the new credit facility?
