Rink,
Seems the $1.3B loan + 250M revolver that first got reduced to 'up to $650M loan + $100M revolver' finally was reduced to $450M loan + $100M revolver. Does anyone remember Numonyx projected cash position to start the company with?
I guess the cash depends on how much of the credit line will be drawn. But, cash in is $150M. Cash out is unclear, because we don't know how much Intel and STM get in cash, how much as notes, and we don't know how much of the loan + revolver was drawn.
One way or another, the company will be cash poor, with some debts, and it is unclear if the company will have ability to raise new funds through credit markets.
ST will receive 48.6 percent of Numonyx's shares and $364 million through a combination of cash in the range from low double digits to $130 million and long-term subordinated interest-bearing notes. ...
Let's say Intel will receive similar amount, for total of say $750M. If the only thing coming in is $150M, than the company starts with net debt of $600M. It seems that nobody was willing to lend Numonyx enough money for Intel and STM to receive all of their money in cash. So it seems that Numonyx will give Intel and STM some notes and some cash...
Let's say cash (for both Intel and STM) = $200M, debt $400M.
Joe |
