Electronics Production | December 27, 2007
Numonyx launch delayed again
Numonyx will not be launched until March 2008.
The launch of the flash memory venture of Intel, STMicroelectronics and Francisco Partners has been delayed to March 2008. Financing is now in place but there are still conditions for the competition authorities to decide whether they are approved or not. The three companies said they are continuing to work to satisfy the conditions for closing of the transaction, and expect the closing to take place in Q1 2008. Also, ST said the companies have received executed bank commitments for the financing of Numonyx, following the significant turmoil in the debt capital markets with the revised financing terms involving a senior loan of up to $650 million along with a $100 million committed revolving credit facility for Numonyx. When the transaction closes, Francisco Partners will invest $150 million in exchange for a 6.3 percent shareholding. In exchange for the contribution of its flash memory business, ST will receive 48.6 percent of Numonyx shares and $364 million through a combination of cash, to be in the range from low double digits to $130 million, along with long-term subordinated interest-bearing notes.