STMicroelectronics NV, Intel Corp. and Francisco Partners LP have announced the closing of their
previously announced Numonyx joint venture.
At the closing, ST contributed its flash memory assets and businesses in NOR and NAND, including its phase-change memory (PCM) resources and NAND joint-venture interest, to Numonyx in exchange for a 48.6-percent equity ownership stake and $155.6 million in long-term subordinated notes. These long-term notes will yield an interest at appropriate market rates.
Intel contributed its NOR assets and certain assets related to PCM resources, while Francisco Partners, a private equity firm, invested $150 million in cash. Intel and Francisco Partners equity ownership interests in Numonyx are 45.1 percent in common shares and 6.3 percent in convertible preferred stock, respectively.
Also at the closing, Numonyx entered into financing arrangements for a $450 million term loan and a $100 million committed revolving credit facility from Intesa Sanpaolo S.p.A. and Unicredit Banca d'Impresa S.p.A. The loans have a four-year term and Intel and ST have each granted in favor of Numonyx a 50-percent guarantee not joint and several, for indebtedness. At close, Numonyx has a cash position of about $585 million.
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