| By Business Wire |
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| September 28, 2012 11:48 AM EDT |
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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.
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1. Overview of the financing by the major
shareholders
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Shareholders
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Amount
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Execution Date
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Purpose
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NEC
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49.5 Billion yen
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October 1, 2012
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To fund business reform
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Hitachi
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Mitsubishi Electric
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*Funding from NEC is a guarantee deposit for stable product supply.
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2. Overview of the syndicate loan by the
main financing banks
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Shareholders
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Amount
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Execution Date
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Purpose
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
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47.5 Billion yen
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October 1, 2012
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To fund business reform
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Mizuho Corporate Bank, Ltd.
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Sumitomo Mitsui Trust Bank, Limited
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Mitsubishi UFJ Trust and Banking Corporation
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3. Effect on the business performance
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The impact on business performance is currently being reviewed,
should any correction to the sales estimate be necessary, Renesas
will make a prompt disclosure.
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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.
