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NEC Electronics Signed JPY 110 Billion Syndicated Loan Agreements
KAWASAKI, Japan, Jan.29, 2003
NEC Electronics Corporation announced that it signed JPY 110 billion syndicated loan agreements with 39 financial institutions on January 28, 2003. The syndicated loan facilities are comprised of a five-years loan, a three-years loan and a 364-days committed revolving facility.
These syndicated loans were arranged by Sumitomo Mitsui Banking Corporation, The Sumitomo Trust & Banking Co, The Bank of Tokyo Mitsubishi, Mizuho Corporate Bank and Development Bank of Japan. Among them, Sumitomo Mitsui Banking Corporation was nominated as the coordinating arranger and a settlement agent.
In Japan, syndicated loans are normally arranged on a "best effort" basis, which does not guarantee the borrower to finance an expected amount until the deal has been completed. In this deal, however, NEC Electronics and arrangers agreed to take an underwriting method, where the underwriting arrangers would assume all the unsubscribed amounts by the invited financial institutions, thus the electronic company could make sure that it would finance all the expected amount at the early stage of the deal.
Upon the corporate separation, NEC Electronics assumed only short-term loan facilities from the parent company, NEC Corporation, but it now has been provided with its own medium and short-term facilities and has established bank relationships, which are expected to accommodate its future operations.
About NEC Electronics Corporation
NEC Electronics Corporation is a wholly owned subsidiary of NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l), one of the world's leading providers of Internet, broadband network and enterprise business solutions. NEC Electronics specializes in semiconductor products encompassing advanced technology solutions for the broadband and communications markets, system solutions for the mobile handsets, PC peripherals, automotive and digital consumer markets, and platform solutions for a wide range of customer applications. NEC Electronics Corporation has 24 subsidiaries worldwide including NEC Electronics America, Inc. and NEC Electronics (Europe) GmbH. For additional information, visit the company's website at http://www.necel.com.
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