French chipmaker STMicroelectronics (STM) reported signing a new 350 million euros loan agreement with the European Investment Bank or EIB. The facility, which has not yet been drawn by ST, is also available in the US$ equivalent amount and has an option for disbursement until September 2014 with final maturity eight years after disbursement.
This new facility supports ST's R&D investments in Power, MEMS, Microcontrollers, Advanced Analog and Healthcare high-growth applications. This includes the full cycle from technology R&D and product development to application solutions that include software development and systems integration. These activities are mainly carried out in ST's Italian sites of Agrate Brianza, Castelletto and Catania.
In addition, on March 17th, 2013, ST repaid with available cash the residual 350 million euros floating-rate senior bonds outstanding with a principal amount of 500 million euros at issuance. ST's capital structure, already supported by a net cash position of about $1.19 billion at the end of 2012 fourth quarter, and existing committed credit lines for around $490 million, has been further strengthened by this new credit facility from the EIB.
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