Photronics Purchases U.S. nanoFab Building from Micron Technology, Inc.
BROOKFIELD, Conn.--(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
Photronics
Pete Broadbent, 203-775-9000
Vice President,
Investor Relations & Marketing
pbroadbent@photronics.com
Source: Photronics
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