Applied Materials, Inc. Enters into an Amendment No. 1 to Term Loan Credit Agreement
January 04, 2021 at 12:35 pm
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On December 30, 2020, Applied Materials, Inc. entered into an Amendment No. 1 to Term Loan Credit Agreement (the “Term Loan Amendment”), by and among Applied, as borrower, JPMorgan Chase Bank, N.A., as administrative agent (the “Agent”), and the lenders party thereto (the “Lenders”), which Term Loan Amendment amends that certain Term Loan Credit Agreement entered into on August 19, 2019, among Applied, the Agent and the Lenders (the “Credit Agreement”). The Credit Agreement provides for a $2.0 billion term loan facility (the “Term Loan Facility”) that, subject to the terms and conditions of the Credit Agreement, may be drawn upon by Applied to fund a portion of the purchase price for the acquisition (the “Acquisition”) by Applied of all of the outstanding shares of Kokusai Electric pursuant the Share Purchase Agreement. The Term Loan Amendment, among other things, (i) extends to April 30, 2021 the expiration date of the Lenders’ commitments to fund the Term Loan Facility, (ii) provides that the Lenders’ commitments to fund the Term Loan Facility shall terminate automatically if the Share Purchase Agreement is terminated without the consummation of the Acquisition and (iii) modifies certain terms relating to the implementation of a LIBOR replacement rate.
Applied Materials, Inc. specializes in the design, manufacture, and marketing of equipment for producing integrated circuits and semi-conductor components. The group develops systems used in the principal manufacturing stages of microchips (deposition systems using chemical vapors, the physical process or through epitaxy, photomasking systems, control programs, etc.).
Net sales break down by activity sector as follows: semiconductor industry (77.2%), flat screen industry (3.3%) and other (19.5%; photovoltaic and electronic industries).
Net sales are distributed geographically as follows: the United States (15.1%), China (27.3%), Taiwan (21.4%), Korea (17.4%), Japan (7.8%), Asia (2.9%) and Europe (8.1%).
APPLIED MATERIALS, INC. 
