Applied Materials Inc. (AMAT) Strengthens Balance Sheet with $2B Credit Facility

Applied Materials Inc. (NASDAQ:AMAT) is one of the high-growth semiconductor stocks that are profitable in 2025. On September 26, the company secured a $2 billion unsecured revolving credit facility, with Bank of America serving as the administrative agent.

The agreement paves the way for the company to borrow up to $2 billion at any given time. Additionally, there is a provision that allows the company to increase the facility to a maximum of $3 billion if additional lender commitments are obtained.

Borrowing under the $2 billion credit facility is to bear an interest rate based on either the secured overnight financing rate (Term SOFR) plus a margin of 0.50% to 1.00%. The credit facility is poised to strengthen the company’s financial position, allowing it to finance general corporate purposes.

Applied Materials Inc. (NASDAQ:AMAT) provides advanced equipment, materials engineering services, and software that semiconductor and display manufacturers need to produce chips and advanced displays. It designs and builds manufacturing systems used to create virtually every new chip and flat panel display.

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Disclosure: None. This article is originally published at Insider Monkey.