Allegro MicroSystems Enters Material Agreement, Incurs Financial Obligation

TL;DR

Allegro MicroSystems just signed a big deal and took on new debt. Watch this space.

AI Summary

On February 6, 2025, Allegro MicroSystems, Inc. entered into a material definitive agreement. This filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. The filing includes financial statements and exhibits related to these events.

Why It Matters

This filing signals a significant new financial commitment or agreement for Allegro MicroSystems, which could impact its future financial performance and strategic direction.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and incurring financial obligations can introduce new financial risks and operational complexities.

Key Players & Entities

• Allegro MicroSystems, Inc. (company) — Registrant
• February 6, 2025 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share ALGM The Nasdaq Stock Mar
• $375 million — The Third Amendment provides for a new $375 million tranche of term loans maturing in 2030

Filing Documents

• algm-20250206.htm (8-K) — 51KB
• algm-ex10_1.htm (EX-10.1) — 3232KB
• 0000950170-25-015395.txt ( ) — 3788KB
• algm-20250206.xsd (EX-101.SCH) — 25KB
• algm-20250206_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On February 6, 2025, Allegro MicroSystems, Inc. (the "Company", "our" or "us") entered into an Amendment No. 3 (the "Third Amendment") to the Credit Agreement, dated as of June 21, 2023 (as amended by Amendment No. 1, dated as of October 31, 2023, Amendment No. 2, dated as of August 6, 2024 and as further amended, restated, supplemented or otherwise modified, refinanced or replaced from time to time, the "Credit Agreement"), by and among the Company, Allegro MicroSystems, LLC, the lending institutions from time to time party thereto Morgan Stanley Senior Funding, Inc. as the Administrative Agent and the Collateral Agent. Capitalized terms used herein, but not otherwise defined herein, are as defined in the Credit Agreement as amended by the Third Amendment. The Third Amendment provides for a new $375 million tranche of term loans maturing in 2030 (the "Refinanced Loans"), the proceeds of which will be used, in relevant part, to (i) refinance all outstanding Existing Amendment No. 2 Term Loans, (ii) pay fees and expenses in connection with the foregoing and (iii) for general corporate purposes. The Refinanced Loans will amortize at a rate of 0.00% per annum. The Refinanced Loans will bear interest, at the Company's option, at a rate equal to (i) Term SOFR (as defined in the Credit Agreement) in effect from time to time plus 2.00% or (ii) the highest of (x) the Federal funds rate, as published by the Federal Reserve Bank of New York, plus 0.50%, (y) the prime lending rate or (z) the one-month Term SOFR plus 1.00% in effect from time to time plus 1.00%. The Refinanced Loans will mature on October 31, 2030. The foregoing description of the Third Amendment is qualified in its entirety by reference to the complete text of the Third Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obliga

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 Amendment No. 3 to the Credit Agreement by and among Allegro MicroSystems, Inc., Allegro MicroSystems, LLC, Morgan Stanley Senior Funding, Inc. and each lender from time to time party thereto, effective as of February 6, 2025. 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ALLEGRO MICROSYSTEMS, INC. Date: February 6, 2025 By: /s/ Derek P. D'Antilio Derek P. D'Antilio Executive Vice President, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR