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To: H.Jablomey who wrote (32273)	4/19/1998 11:53:00 PM
From: Kathleen capps	Respond to of 53903

Sam, This applies to MU's line of credit set up May 96. From the May 96 10Q: 7. Short-term debt In the third quarter of 1996, the Company established a revolving credit facility that provides for borrowings up to $500 million. As of May 30, 1996, the Company had $200 million outstanding and is operating under a 60-day waiver from the bank syndicate while negotiating changes to covenant provisions. The interest rate on borrowed funds is based on various pricing options and was 5.99% as of May 30, 1996. Kathleen

To: H.Jablomey who wrote (32273)	4/20/1998 12:03:00 AM
From: Kathleen capps	Respond to of 53903

Sam, Another interesting point. While MU is in complience with the LOC covenents (no doubt aided by the changes effective 26 Feb), MUEI is not. MTI has a $500 million unsecured revolving credit agreement expiring in May 2000. The agreement contains certain restrictive covenants pertaining to the Company's semiconductor operations, including a minimum fixed charge coverage ratio and a maximum operating loss covenant. As of February 26, 1998, MTI was in compliance with all covenants under the facility and had no borrowings outstanding under the agreement. There can be no assurance that MTI will continue to be able to meet the terms of the covenants and conditions and be able to borrow under the credit agreement. MEI has an aggregate of $142 million in revolving credit agreements which contain certain restrictive covenants pertaining to MEI's operations, including a minimum EBITDA covenant, certain minimum financial ratios and limitations on the amount of dividends declared or paid by MEI. For the quarter ended February 26, 1998, MEI was in violation of its ratio of debt to EBITDA covenant, which excludes the effect of the gain on the sale of MCMS. MEI obtained a waiver for the violation of the covenant, and as a result was eligible to borrow approximately $42 million under the credit lines, and had aggregate borrowings of approximately $9 million outstanding under the agreements.