Kingston Technology has reported and agreed to act as a guarantor for ProMOS Technologies' application for a syndicated loan of NT$5 billion (US$148 million) from nine local banks.

Kingston has agreed to guarantee NT$1.5-2 billion of the loan in support of the cash-strapped DRAM maker.

The loan is expected to help ProMOS redeem its euro convertible bonds (ECBs) by the February 14 deadline, the sources said.

ProMOS has said via a company filing with the Taiwan Stock Exchange (TSE) on February 3 that the company's NT$5 billion loan application was being evaluated by the banks, which required ProMOS to collateralize its production equipment and to find guarantors. The company did not reveal further details.

Two companies have agreed to guarantee NT$5 billion in loans to ProMOS, Taiwan's Minister of Economic Affairs Yiin Chii-ming said in a press conference on Tuesday. A foreign memory module specialist is one of the guarantors, and the other is a foreign trader providing guarantee for ProMOS' collateralized equipment, according to Yiin.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved