BUSINESS WIRE — Photronics, Inc. (NASDAQ:PLAB), semiconductor manufacturing imaging technology supplier, purchased its US nanoFab building from Micron Technology Inc., paying approximately $35 million. PLAB expects to save $5 million annually after the deal.
PLAB 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.”