From October '98 10Q
On September 30, 1998, TI sold its memory business, including its DRAM
manufacturing joint venture interests, to Micron Technology, Inc. As a result, TI received 28,933,092 Micron common shares, $740 million in notes convertible into an additional 12 million Micron common shares, and a $210 million subordinated note. The market value of the seven year, 6.5% convertible and subordinated notes was approximately $836 million, with an average imputed interest rate of 8.7%. The Micron shares and notes are included in investments on the balance sheet. In addition to TI's memory assets, Micron received $550 million in cash from TI to facilitate the deployment of Micron's technology throughout the acquired business. TI deferred a pre-tax gain of $127 million on the sale until the repayment of the TI-provided financing. In connection with the sale, TI agreed to guarantee the payment obligations of one of its former joint ventures under a newly-syndicated $450 million principal amount credit facility. At closing, the joint venture had borrowed $210 million under the
facility. As a result of the guarantee, TI was granted a security interest in the joint venture's assets. In addition, the guarantee is partially offset by certain contingent funding obligations of the joint venture shareholders.
From April '99 10Q
In the first quarter of 1999, sale of the Micron subordinated note and other securities generated $172 million in cash.
Hope this helps. |
