John,
The terms and conditions of MU's 500K credit agreement were published on line as part of the May 97 10k. It's still available on Edgar. sec.gov
It all makes interesting reading but here is a listing of the criteria that MU has to meet each quarter or be in default:
FORM OF COMPLIANCE CERTIFICATE 5/23/97
D-3
SCHEDULE 2
----------
TO THE COMPLIANCE CERTIFICATE
($ IN 000'S)
Date: ______________, 199__
For the fiscal quarter/year
ended ______________, 199__
(Unless otherwise noted, all covenants are to be calculated on basis of the
Company and the Semiconductor Operations Subsidiaries on a combined basis.)
A. SECTION 7.13: ADJUSTED QUICK RATIO.
-----------------------------------
1. Cash, cash equivalents and liquid
investments: $_________________
2. Net trade accounts receivable: $_________________
3. Current liabilities: $_________________
4. Long-term liabilities related to
customer deposits and loans: $_________________
5. Any Loans outstanding: $_________________
6. Adjusted Quick Ratio (Lines A.1 +
A.2) / (Lines A.3 + A.4 + A.5): _______ to 1.00
Line A.6 not to be less than:
As of the last day of the Minimum Adjusted
fiscal quarter ending Quick
--------------------- -----------
Ratio
- ------
Closing Date through 2/26/98 0.75 to 1.00
5/28/98 and thereafter 1.00 to 1.00
B. SECTION 7.14: COMBINED TANGIBLE NET WORTH.
------------------------------------------
1. Total net assets:/1/ $____________
2. Net book value of intangible assets:/1/ $____________
3. Line B.1 less Line B.2: $============
----
4. 75% of Combined Net Income (not
reduced by Combined Net Loss)
commencing with FQ ending 5/29/97: $____________
5. 100% of increases in Combined
Tangible Net Worth resulting from
certain equity offerings after
Closing Date: $____________
6. $______________ + Line B.4 + B.5: $
============
Line B.3 not to be less than Line B.6
C. SECTION 7.15: LEVERAGE RATIO.
-----------------------------
1. Combined Adjusted Total Liabilities:
a. Total liabilities: $____________
b. Certain off-balance sheet
obligations: $____________
c. Total Liabilities
(Lines C.1a + C.1b): $============
2. Line B.3 (Combined Tangible Net Worth): $____________
3. Leverage Ratio (Line C.1c / Line C.2): ______ to 1.00
Leverage Ratio not to exceed 0.75 to 1
____________________
/1/ Excluding non-semiconductor operations and assets otherwise included
therein.
FORM OF COMPLIANCE CERTIFICATE 5/23/97
-2-
<PAGE>
D. SECTION 7.16: MINIMUM FIXED CHARGE COVERAGE RATIO.
--------------------------------------------------
1. EBITDA for four consecutive quarters
ending on date of above financial
statements ("Subject Period"):
a. Combined Net Income or
Combined Net Loss: $__________________
b. Combined Interest Expense:/2/ $__________________
c. Income tax expense:/1/ $__________________
d. Depreciation expense:/1/ $__________________
e. Amortization expense:/1/ $__________________
f. EBITDA (Lines D.1a + b +
c + d + e): $==================
2. Combined interest expense
for Subject Period (Line D.1b): $__________________
3. Current portion of long-term debt: $__________________
4. Fixed Charge Coverage Ratio
(Line D.1f / (Lines D.1 + D.2): ________ to 1.00
Fixed Charge Coverage Ratio not to be less than:
Minimum Fixed
As of the last day of the Charge Coverage
fiscal quarter ending Ratio
---------------------------- ---------------
<S> <C>
2/27/97 2.50 to 1.00
5/29/97 2.50 to 1.00
8/28/97 3.00 to 1.00
11/27/97 3.50 to 1.00
2/26/98 4.00 to 1.00
5/28/98 4.00 to 1.00
9/03/98 4.00 to 1.00
12/03/98 and
thereafter 5.00 to 1.00
_________________
/2/ To the extent deducted in determining Semiconductor Operations Group Net
Income or Net Loss.
E. SECTION 7.17: MAXIMUM COMBINED LOSS.
------------------------------------
1. Combined Net Loss for quarter
ending on above date: $____________
2. Combined Net Loss for Subject Period: $____________
3. Line B.3 (Combined Tangible Net Worth): $____________
a. 2% of Line E.3: $____________
b. 5% of Line E.3: $____________
Line E.1 not to exceed Line E.3a
Line E.2 not to exceed Line E.3b
F. SECTION 7.01(J): PURCHASE MONEY LIENS.
--------------------------------------
1. Indebtedness secured by purchase money
and other similar security interests: $____________
2. Combined net property, plant and
equipment: $____________
3. 20% of Line F.2: $____________
Line F.1 not to exceed Line F.3
G. SECTIONS 7.01(Q), (R): SECURED PERMITTED SWAP OBLIGATIONS; ORDINARY COURSE
---------------------------------------------------------------------------
SECURED INDEBTEDNESS.
--------------------
1. Permitted Swap Obligations secured
by cash collateral or government
securities: $____________
2. Ordinary course secured Indebtedness
for other than borrowed money: $____________
3. Combined Tangible Assets: $____________
a. Total assets:/3/ $____________
b. Line B.2: $____________
_______________________
/3/ Excluding non-semiconductor operations and assets otherwise included
therein.
c. Line G.3a less Line G.3b: $============
----
4. 5% of Line G.3c: $____________
Lines G.1 + G 2 not to exceed Line G.4
H. SECTION 7.03(D): DISPOSITION OF MATERIAL ASSETS.
------------------------------------------------
1. Aggregate fair market value of
all material (greater than $1,000,000
individually) assets sold outside
ordinary course of business: $____________
2. Aggregate fair market value of
all material (greater than $1,000,000
individually) assets disposed of pur-
suant to sale-leaseback transactions
not constituting Permitted Sale-
Leaseback Transactions: $____________
3. Lines H.1 + H.2: $____________
4. 10% of Line G.3c (Combined
Tangible Assets): $____________
Line H.3 not to exceed Line H.4
I. SECTION 7.05(D): INVESTMENTS IN MICRON ELECTRONICS, INC.
--------------------------------------------------------
1. Aggregate principal amount of all
outstanding extensions of credit to,
plus cumulative amount of all equity
----
contributions made since Closing Date
in, Micron Electronics, Inc: $____________
Line I.1 not to exceed $100,000,000
J. SECTION 7.05(E): INVESTMENTS IN NON SEMICONDUCTOR OPERATIONS SUBSIDIARIES
--------------------------------------------------------------------------
(OTHER THAN MICRON ELECTRONICS, INC.).
-------------------------------------
1. Aggregate principal amount of all
outstanding extensions of credit to,
plus cumulative amount of all equity
----
contributions made since Closing Date
in, non Semiconductor Operations
Subsidiaries other than Micron
Electronics, Inc.: $____________
Line J.1 not to exceed Line E.3b (5% of Combined Tangible Net Worth)
K. SECTION 7.05(G): ACQUISITIONS OR MINORITY INTERESTS.
----------------------------------------------------
Cumulative aggregate consideration paid
(including assumption of debt),
aggregate principal amount of all out-
standing extensions of credit, plus
----
cumulative amount of all equity
contributions made since Closing
Date in connection with: $____________
1. Acquisitions: $____________
2. Acquisitions of minority interests: $____________
3. Acquisitions of minority interests in
Subsidiaries that are not Wholly-Owned
Semiconductor Operations Subsidiaries: $____________
4. Lines K.1 + K.2 + K.3: $____________
5. 25% of Line G.3c
(Combined Tangible Assets): $____________
Line K.4 not to exceed Line K.5
L. SECTION 7.05(O): OTHER INVESTMENTS.
-----------------------------------
1. Cumulative aggregate consideration
paid (including assumption of debt),
aggregate principal amount of all
outstanding extensions of credit,
plus cumulative amount of all
----
equity contributions made since
Closing Date not otherwise
permitted by Section 7.05: $____________
2. 2% of Line G.3c (Combined
Tangible Assets): $____________
Line L.1 not to exceed Line L.2
M. SECTION 7.06(H): INDEBTEDNESS INCURRED FROM OTHER THAN COMPANY OR
------------------------------------------------------------------
SEMICONDUCTOR OPERATIONS SUBSIDIARIES.
-------------------------------------
1. Indebtedness incurred by Semiconductor
Operations Subsidiaries from Persons
other than Company or Semiconductor
Operations Subsidiaries: $____________
Line M.1 not to exceed $50,000,000
N. SECTION 7.06(J): PERMITTED SUBORDINATED DEBT.
---------------------------------------------
1. Permitted Subordinated Debt of Company: $____________
Line N.1 not to exceed $500,000,000
O. SECTION 7.06(K)): SENIOR UNSECURED DEBT.
----------------------------------------
1. Senior Unsecured Debt of Company: $____________
Line O.1 not to exceed $300,000,000
P. SECTION 7.06(P): OTHER INDEBTEDNESS AND CONTINGENT OBLIGATIONS FOR OTHER
-------------------------------------------------------------------------
THAN BORROWED MONEY.
-------------------
1. Other Indebtedness and Contingent
Obligations other than for
borrowed money: $____________
Line P.1 not to exceed $50,000,000
Q. SECTION 7.09(D): DISTRIBUTIONS.
------------------------------
1. Distributions during Subject Period: $____________
2. 25% of Line D.1a (Combined Net Income): $____________
Line Q.1 not to exceed Line Q.2 |
