Cohu Announces $100 Million 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 Müller.

About Cohu:
Cohu (NASDAQ: COHU) is a global leader in back-end semiconductor equipment and services, delivering leading-edge solutions for the manufacturing of semiconductors. Additional information can be found at www.cohu.com.

Forward-Looking Statements
Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding deleveraging as a priority, expected interest expense savings, expected charges for loss on debt extinguishment, and any other statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance.