MXIM - Analog Devices executes $2.5B sustainability-linked revolving credit facility

Analog Devices (ADI) has become the first US semiconductor company to issue a sustainability-linked revolving credit facility, valued at $2.5B. The new facility that will replace an existing $1.25B senior revolving credit facility.The credit facility is linked to two key performance indicators at ADI's main manufacturing sites: cutting greenhouse gas emissions and using renewable energy. ADI will receive pricing adjustments if it meets certain criteria on these indicators during the five-year term.The company will have access to 50% of the new credit facility only upon completion of its acquisition of Maxim Integrated Products (MXIM), which manufactures integrated circuits.ADI's broader climate strategy includes achieving carbon neutrality by 2030 and net zero emissions by 2030, and committing to Science Based Targets initiative (SBTi) verified targets.In a recent analysis, SA contributor Chetan Woodun wrote about Analog Devices' potential to sustain both revenue and profitability growth amid the current demand-supply imbalance in the semiconductor

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Analog Devices executes $2.5B sustainability-linked revolving credit facility