Korea Development Bank Agrees to Lend $1.5 Billion to Micron for Hynix, Report Says
Monday April 1, 8:20 pm Eastern Time
biz.yahoo.com
SEOUL -- State-run Korea Development Bank has agreed to provide a $1.5 billion loan to Micron Technology (NYSE: MU - news) Inc. (MU) to help the U.S. company buy assets of Hynix Semiconductor Inc.,, Moneytoday.co.kr reported Tuesday.
The loan arrangement clears one of the major stumbling blocks to a $4 billion deal to sell most of the Korean chipmaker to the U.S. company, the local online news provider reported.
Major creditor banks of Hynix have agreed on the bank providing the $1.5 billion loan to Micron, while Korea Exchange bank, Hanvit Bank and Chohung Bank will offer loan guarantees according to their Hynix exposures, the report said, quoting an unidentified official from a creditor bank.
Creditors and Hynix tentatively agreed last month to sell the debt-ridden chip maker's memory-chip operations to Micron for $3.8 billion, and a minority stake in the non-memory chip division for $200 million. Micron has never confirmed the figures.
Micron has reportedly asked creditors, in return, for a $1.5 billion seven- year loan, with an annual interest rate of up to 6%.
Differences among creditor banks on the terms and sharing of the loan have been a reason for the delay in the signing of a non-binding agreement.
-By Suh Hae-sung, Dow Jones Newswires; 822-732-2165; hae-sung.suh@dowjones.com |
