Photronics Purchases U.S. nanoFab Building from Micron Technology, Inc.
March 06 2012 - 4:30PM
Business Wire
Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, announced today that it paid approximately $35 million to
Micron Technology, Inc. (“Micron”) in connection with the purchase
of its U.S. nanoFab building in Boise, ID that it previously leased
from the building’s owner Micron. In connection therewith, the
Company also amended its credit facility adding a 5-year term loan
for $25 million and reducing interest rates by 25 basis points on
borrowings as defined in the credit facility.
As a result of the purchase, Photronics’ operating lease with
Micron for the nanoFab facility has been cancelled. This reduced
the Company’s related outstanding operating lease commitments by a
total of $15 million for fiscal years 2013 and 2014. Accordingly,
as a result of this transaction, beginning in fiscal year 2013, the
Company’s net cash flow will improve by approximately $5 million
annually and its expenses will be reduced by approximately $5
million annually.
Chief Financial Officer Sean T. Smith, Photronics commented,
“The acquisition of this state-of-the-art facility is another step
forward in our ongoing work to improve cash flow and reduce
expenses.”
Photronics is a leading worldwide manufacturer of photomasks.
Photomasks are high precision quartz plates that contain
microscopic images of electronic circuits. A key element in the
manufacture of semiconductors and flat panel displays, photomasks
are used to transfer circuit patterns onto semiconductor wafers and
flat panel substrates during the fabrication of integrated
circuits, a variety of flat panel displays and, to a lesser extent,
other types of electrical and optical components. They are produced
in accordance with product designs provided by customers at
strategically located manufacturing facilities in Asia, Europe, and
North America. Additional information on the Company can be
accessed at www.photronics.com.
The Private Securities Litigation Reform Act of 1995 provides a
“safe harbor” for forward-looking statements made by or on behalf
of Photronics, Inc. and its subsidiaries (the Company). The
forward-looking statements contained in this press release and
other parts of Photronics’ web site involve risks and uncertainties
that may affect the Company’s operations, markets, products,
services, prices, and other factors. These risks and uncertainties
include, but are not limited to, economic, competitive, legal,
governmental, and technological factors. Accordingly, there is no
assurance that the Company’s expectations will be realized. For a
fuller discussion of the factors that may affect the Company's
operations, see "Forward Looking Statements" in the Company's
Quarterly and Annual Reports to the Securities and Exchange
Commission on Forms 10-Q and 10-K. The Company assumes no
obligation to provide revisions to any forward-looking
statements.
06-2012
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