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.”
Photronics manufactures photomasks for manufacturing semiconductors and flat panel displays (FPDs), as well as other electronic components. Additional information is available at www.photronics.com.