Cohu Announces $100 Million Credit card debt Prepayment

POWAY, Calif.–(Business WIRE)–Cohu, Inc. (NASDAQ: COHU), a international leader in back-end semiconductor products and products and services, nowadays declared that it has pay as you go an further $100 million of its term loan B (TLB) facility. As a outcome of this prepayment, Cohu has diminished the outstanding principal of its TLB to approximately $104 million.

The credit card debt prepayment was funded with internet proceeds from the divestment of the company’s Printed Circuit Board Examination company done on June 24, 2021.

The $100 million principal reduction is predicted to conserve close to $.8 million in fiscal third quarter 2021 curiosity expense. With the big principal reduction, loan origination costs remaining amortized around the lifestyle of the TLB are accelerated and, as a result, the corporation expects to file a non-money cost of about $1.7 million for decline on credit card debt extinguishment.

“Deleveraging carries on to be a precedence for us and we are pleased to have minimized our TLB credit card debt by around $202 million, so far, for the duration of fiscal year 2021,” reported Cohu President and CEO Luis Müller.

About Cohu:

Cohu (NASDAQ: COHU) is a world leader in back-close semiconductor products and companies, offering leading-edge methods for the producing of semiconductors. Added facts can be identified at www.cohu.com.

Ahead-Wanting Statements

Certain statements contained in this launch and accompanying products may well be regarded ahead-wanting statements in just the this means of the U.S. Non-public Securities Litigation Reform Act of 1995, which includes statements relating to deleveraging as a priority, expected fascination cost discounts, expected rates for loss on credit card debt extinguishment, and any other statements that are predictive in character and rely on or refer to future situations or situations, and include things like words this kind of as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other related expressions amongst other individuals. Statements that are not historic info are ahead-wanting statements. Ahead-on the lookout statements are based on current beliefs and assumptions that are matter to hazards and uncertainties and are not guarantees of future efficiency.

Genuine outcomes could vary materially from people contained in any ahead-wanting assertion as a final result of different factors, including, devoid of limitation: the ongoing world-wide COVID-19 pandemic has adversely affected, and is continuing to adversely influence, our organization and effects of functions we are generating investments in new products and solutions and merchandise enhancements, which could adversely affect our running success and these investments may well not be commercially profitable we are uncovered to the challenges of operating a world business enterprise we have production operations in Asia, and any failure to successfully regulate multiple production websites and to safe raw elements assembly our quality, price tag and other specifications, or failures by our suppliers to carry out, could hurt our sales, provider degrees and standing failure of vital suppliers to provide adequate portions of parts in a timely and expense-effective method could adversely affect us and our functions the semiconductor field is seasonal, risky and unpredictable the semiconductor machines sector is intensely aggressive semiconductor equipment is issue to fast technological adjust, solution introductions and transitions which may perhaps outcome in inventory generate-offs, and our new item advancement will involve several dangers and uncertainties the seasonal mother nature of the semiconductor gear market spots great calls for on our employees, functions and infrastructure a confined selection of clients account for a significant proportion of our internet profits a majority of our revenues are produced from exports to international nations around the world, mainly in Asia, that are subject matter to financial and political instability and we compete in opposition to a quantity of Asia-based test contactor, examination handler, automated exam products suppliers the incurrence of considerable indebtedness in connection with our funding of the Xcerra acquisition may perhaps have an adverse affect on Cohu’s liquidity, restrict Cohu’s versatility in responding to other organization prospects and enhance Cohu’s vulnerability to adverse financial and sector ailments our Credit rating Agreement includes different representations and adverse covenants that limit, matter to specific exceptions and baskets, our potential and/or our subsidiaries’ ability to enter into financing and other transactions relating to our belongings simply because of high financial debt levels we may well not be ready to services our credit card debt obligations in accordance with their terms we are exposed to other pitfalls affiliated with other acquisitions, investments and divestitures we assume to carry on to consider and pursue divestitures of non-main property our monetary and running outcomes may fluctuate and drop underneath analysts’ estimates, or credit history score organizations might modify their ratings on Cohu, any of which may bring about the rate of our typical inventory to decrease or make it hard to attain other financing probable goodwill impairments if our company underperforms worldwide financial and political problems, such as trade tariffs and export limits, and other regulatory demands, have impacted our business and could proceed to have an adverse influence on our small business and monetary problem and our business enterprise and functions could go through in the function of cybersecurity breaches.

These and other challenges and uncertainties are reviewed more completely in Cohu’s filings with the SEC, including the most just lately filed Type 10-K and Variety 10-Q, and the other filings created by Cohu with the SEC from time to time, which are readily available by using the SEC’s internet site at www.sec.gov. Except as required by applicable law, Cohu does not undertake any obligation to revise or update any forward-searching statement, or to make any other ahead-searching statements, no matter whether as a consequence of new information, potential situations or or else.