SYS-CON MEDIA Authors: Mat Mathews, PR.com Newswire, David Smith, Tim Crawford, Kevin Benedict

News Feed Item

Renesas Electronics Announces the Successful Implementation of Measures to Ensure a Robust and Profitable Structure

Renesas Electronics Corporation (TSE: 6723) (hereinafter “Renesas”), a premier supplier of advanced semiconductor solutions, today announced the execution of a guarantee deposits agreement with NEC Corporation (hereinafter “NEC”), of loan agreements with Hitachi, Ltd. (hereinafter “Hitachi”) and Mitsubishi Electric Corporation (hereinafter “Mitsubishi Electric”), and a syndicate loan agreement with Renesas’ main financing banks to implement financing totaling 97 Billion Yen. These agreements now secure the funds for the structural reform of production sites and the early retirement incentive program as announced by Renesas on July 3, 2012. This financing will become effective October 1, 2012.

With these financial arrangements in place, Renesas will accelerate business, financial and product offering reforms to reach the goals of profitability, a reduced fixed-cost base and an ability to respond to market changes flexibly, in line with the July 3, 2012 announcement. Renesas intends to be a company that consistently achieves an operating profit ratio of more than 10 percent.

1. Overview of the financing by the major shareholders

Shareholders   Amount   Execution Date   Purpose
NEC   49.5 Billion yen   October 1, 2012   To fund business reform
Hitachi
Mitsubishi Electric      

*Funding from NEC is a guarantee deposit for stable product supply.

 

2. Overview of the syndicate loan by the main financing banks

Shareholders   Amount   Execution Date   Purpose
The Bank of Tokyo-Mitsubishi UFJ, Ltd.   47.5 Billion yen   October 1, 2012   To fund business reform
Mizuho Corporate Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation      
 

3. Effect on the business performance

The impact on business performance is currently being reviewed, should any correction to the sales estimate be necessary, Renesas will make a prompt disclosure.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723), the world’s number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.