Toshiba Memory Holdings to Implement $11 Billion Financing

Toshiba Memory Holdings Corporation announced its board of directors has agreed today with Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., and Mizuho Bank, Ltd., to take on ¥900 billion in new loans and an additional commitment line of ¥100 billion, aiming to further strengthen the company’s business base and capital structure.

The board of directors also decided today to issue ¥300 billion worth of non-convertible-bond-type preferred stock as a third-party allotment to Development Bank of Japan Inc., bringing the total amount of new financing to ¥1.2 trillion.

Both financing initiatives are scheduled to be implemented by the end of June.

The new financing will be used to refinance loans totaling of ¥600 billion from the main financial banks for the acquisition of Toshiba Memory Corporation last June by K.K. Pangea, a special-purpose company formed by a consortium led by Bain Capital Private Equity, LP. The company will also reorganize its capital structure through moves including early redemption of existing non-convertible-bond-type preferred stock.

Toshiba Memory Holdings will continue to enhance its competitiveness by deploying various financial measures going forward. This will include implementing cutting-edge R&D targeted at flash memory and responding to promising market trends with strategic capital investments in its K1 manufacturing facility in Kitakami, Iwate Prefecture, Japan.