Chipmaker STMicro said on Wednesday that the revised financing of $750 million followed "significant turmoil in the debt capital markets." The spokesman declined to identify the sources of the financing.
NEW YORK (Reuters) - A flash memory joint venture owned by STMicroelectronics <STM.PA> <STM.N>, Intel Corp <INTC.O> and Francisco Partners will get about half the debt financing originally intended and has delayed closing until March 28.
Chipmaker STMicro said on Wednesday that the revised financing of $750 million followed "significant turmoil in the debt capital markets." The spokesman declined to identify the sources of the financing.
Numonyx, which will make flash memory for devices such as mobile phones, MP3 players, digital cameras and computers, will get a senior loan of up to $650 million and a $100 million committed revolving credit facility, STMicro said.
The venture, which was supposed to be completed by the end of 2007, previously had a financing commitment of $1.55 billion, Intel said in a separate filing with the U.S. Securities and Exchange Commission.
!ADVERTISEMENT!At closing, private equity firm Francisco Partners will invest $150 million in exchange for a 6.3 percent stake in Numonyx. STMicro will hold 48.6 percent of Numonyx and get $364 million in a mix of cash and long-term subordinated interest-bearing notes.
It originally was supposed to get a 48.6 percent stake and $468 million. Intel, the companies said in May, would own 45.1 percent of the venture and get a $432 million payment.
STMicro said it expects to adjust its previously estimated fourth-quarter noncash impairment loss related to the transaction.
STMicro shares fell 14 cents to $14.46 on the New York Stock Exchange. Intel shares fell 5 cents to $27.26 on the Nasdaq stock market.
(Reporting by Michele Gershberg and Robert MacMillan; Editing by Brian Moss)
