8-KMaterial Agreements

MICRON TECHNOLOGY INC 8-K Report, Material Agreement (Nov 27, 2009)

Filed November 27, 2009For Securities:MU

Summary

This 8-K filing by Micron Technology, Inc. (MU) on November 27, 2009, primarily details the refinancing of a significant debt obligation related to its acquisition of shares in Inotera Memories, Inc. The company utilized a new $200 million loan from Mai Liao Power Corporation to repay an existing $200 million loan from Nan Ya Plastics Corporation (NPC). The refinancing is strategically important for Micron as it manages its capital structure following the Inotera share purchases. The new loan, the Mai Liao Loan, is secured by Inotera shares and carries similar terms to the previous NPC Loan, including a variable interest rate based on 3-month LIBOR plus 2%, and matures one year from the agreement date. Micron continues to guarantee this new debt, underscoring its commitment to the Inotera investment.

Key Highlights

  • 1Micron Technology refinanced a $200 million loan with a new $200 million loan from Mai Liao Power Corporation.
  • 2The new loan (Mai Liao Loan) was used to repay a previous loan from Nan Ya Plastics Corporation (NPC).
  • 3The transaction is related to Micron's prior purchase of Inotera Memories, Inc. (Inotera) shares.
  • 4The Mai Liao Loan matures on November 24, 2010.
  • 5The loan carries an interest rate of 3-month LIBOR plus 2%.
  • 6Micron Technology, Inc. provided a guarantee for the Mai Liao Loan.
  • 7The loan is secured by a pledge of Inotera shares held by Micron Semiconductor B.V. and Micron Technology Asia Pacific, Inc.

Frequently Asked Questions

The main purpose of this filing is to report on a material definitive agreement, specifically Micron Technology's entry into a new loan agreement with Mai Liao Power Corporation to repay an existing loan from Nan Ya Plastics Corporation (NPC). This action is linked to Micron's investment in Inotera Memories, Inc.

The Mai Liao Loan is for $200 million, matures on November 24, 2010, and bears interest at 3-month LIBOR plus 2%. It is secured by a pledge of Inotera shares and is guaranteed by Micron Technology, Inc. These terms are essentially the same as the previous NPC Loan.

This refinancing appears to be a routine management of short-term debt used to finance the acquisition of Inotera shares. It replaces an expiring loan with a new one on similar terms, suggesting no immediate negative impact on Micron's financial structure, but it does extend the maturity of this debt by one year.

The filing indicates that the loans are tied to Micron's purchase of shares in Inotera Memories, Inc. While this 8-K doesn't provide financial details about Inotera itself, it highlights that Micron has secured financing for a significant stake in the company, which likely plays a role in its broader strategy within the memory market.