Benzinga | Jun 30, 2021 04:05PM EDT

Cohu Reports $100M Debt Prepayment

Cohu, Inc. (NASDAQ:COHU), a global leader in back-end semiconductor equipment and services, today announced that it has prepaid an additional $100 million of its term loan B (TLB) facility. As a result of this prepayment, Cohu has reduced the outstanding principal of its TLB to approximately $104 million.

The debt prepayment was funded with net proceeds from the divestment of the company's Printed Circuit Board Test business completed on June 24, 2021.

The $100 million principal reduction is expected to save approximately $0.8 million in fiscal third quarter 2021 interest expense. With the large principal reduction, loan origination costs being amortized over the life of the TLB are accelerated and, as a result, the company expects to record a non-cash charge of approximately $1.7 million for loss on debt extinguishment.

"Deleveraging continues to be a priority for us and we are pleased to have reduced our TLB debt by approximately $202 million, so far, during fiscal year 2021," said Cohu President and CEO Luis M?ller.