Global Sources
EE Times-India
Stay in touch with EE Times India
 
EE Times-India > Manufacturing/Packaging
 
 
Manufacturing/Packaging  

Intel, ST delay Numonyx debut

Posted: 28 Dec 2007     Print Version  Bookmark and Share

Keywords:Numonyx  Intel-ST flash JV  flash memory 

Amid turmoil in the debt capital markets, Intel Corp., Francisco Partners and STMicroelectronics have postponed the closing of Numonyx, their joint flash-memory venture, to March 28, 2008.

The original deadline for the memory venture was Jan. 1, 2008, analysts said. At that time, Numonyx was supposed to be a full-fledged and independent company, they added.

The three parties continue to work to satisfy the conditions to closing for the transaction, and expect the closing to take place in Q1 2008.

ST announced that the parties have received executed bank commitments for the financing of Numonyx, ''following the significant turmoil in the debt capital markets.''

When the venture was announced in May, the parties arranged for the new company to receive firm commitments for a Rs.5,129.80 crore ($1.3 billion) term loan and Rs.986.50 crore ($250 million) revolver.

The revised financing terms involve a senior loan of up to Rs.2,564.90 crore ($650 million), and a Rs.394.60 crore ($100 million) committed revolving credit facility for Numonyx. As anticipated, at closing Francisco Partners will invest Rs.591.90 crore ($150 million) in exchange for a 6.3 per cent shareholding. In exchange for its contribution of its flash memory business, ST will receive 48.6 per cent of Numonyx's shares and Rs.1,436.34 crore ($364 million) through a combination of cash in the range from low double digits to Rs.512.98 crore ($130 million) and long-term subordinated interest-bearing notes.

Based on the finalised financing structure, at closing Numonyx is expected to have a similar level of net cash, with lower indebtedness, than originally anticipated.

- EE Times




Comment on "Intel, ST delay Numonyx debut"
Comments:  
*  You can enter [0] more charecters.
*Verify code:
 
 
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

 

Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

 
Back to Top