STMicroelectronics (NYSE:STM) has announced that Intel, Francisco
Partners and ST have agreed to extend the deadline for the closing of
Numonyx, the joint flash memory venture, to March 28, 2008. 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 also announced that the parties have received executed bank
commitments for the financing of Numonyx, following the significant
turmoil in the debt capital markets. The revised financing terms involve
a senior loan of up to $650 million, and a $100 million committed
revolving credit facility for Numonyx. As anticipated, at closing
Francisco Partners will invest $150 million in exchange for a 6.3%
shareholding. In exchange for its contribution of its flash memory
business, ST will receive 48.6% of Numonyx's shares and $364
million through a combination of cash (in the range from low double
digits to $130 million) and long-term subordinated interest-bearing
notes. In its Financial Statements for the fourth quarter of 2007, ST
expects to recognize adjustments to its previously estimated non-cash
impairment loss, net of tax benefits, related to this transaction.
Based on the finalized financing structure, at closing Numonyx is
expected to have a similar level of net cash, with lower indebtedness,
than originally anticipated.
After closing, Numonyx will be the industry's largest supplier
of NOR flash memory and a leader in nonvolatile memory solutions with a
substantial patent portfolio. Intel, Francisco Partners and ST intend
for Numonyx to hit the ground running, with an energized and independent
work force, substantial intellectual property, modern and well-equipped
manufacturing facilities, and a broad and diverse customer base.
About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering
semiconductor solutions across the spectrum of microelectronics
applications. An unrivalled combination of silicon and system expertise,
manufacturing strength, Intellectual Property (IP) portfolio and
strategic partners positions the company at the forefront of
System-on-Chip (SoC) technology and its products play a key role in
enabling today's convergence markets. The company's shares are
traded on the New York Stock Exchange, on Euronext Paris and on the
Milan Stock Exchange. In 2006, the company's net revenues were
$9.85 billion and net earnings were $782 million.
For more information, visit http://www.st.com or call 212/821-8939.
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