Not yet formed, Numonyx is already an action-packed story. And, as the March 28, 2008 deadline is approaching, another cause of delay may arise.
PARIS – Not yet formed, Numonyx is already an action-packed story.
The flash memory company being formed by the sell-off of the memory groups within STMicroelectronics NV and Intel Corp. has hit the news wire on Dec. 28, 2007 when Intel, Francisco Partners LP and ST delayed the closing of Numonyx from Jan. 1 (according to analysts) to March 28, 2008.
Earlier in February, Intel and ST started shipping to customers the prototype of their phase-change memory, codenamed Alverstone. Again, Intel ran more than six months late with its delivery of phase-change memory.
Now that the March 28, 2008 deadline is approaching, another cause of delay may arise.
A press conference was originally scheduled on Feb. 26, 2008 in the stylish and elegant Hotel du Louvre, in Paris. On that occasion, Brian Harrisson, incoming CEO of Numonyx, would have discussed the new company’s strategy and offer, PRs claimed. Surprisingly, or not surprisingly for those who have been following Numonyx saga, PRs informed editors that the press conference was "delayed to an unspecified later date".
Why is the press conference delayed? When will it be rescheduled? PRs did not seem to know. No good answer could then satisfy the restless and inquisitive spirit of editors, which takes us into the worlds of imagination, speculation and inspiration.
We shall then attempt to solve that mystery. Are Paris air traffic controllers planning another strike? Is the Hotel du Louvre closed for renovation? Has Brian Harrisson other plans on Feb. 26, like admiring Mona Lisa’s enigmatic smile in the Musée du Louvre?
Or. Could it be that the closing of the deal to form Numonyx on March 28, 2008 will once again be delayed to a later date? Are Francisco Partners, Intel and STMicroelectronics facing difficulties in putting together the financial package? Are Francisco Partners dragging their feet?
In a press release dated Dec. 28, 2007, ST, Intel and Francisco Partners said they expected the closing to take place in the first quarter of 2008. The three parties also said they had received executed bank commitments for the financing of Numonyx. The revised financing terms involve a senior loan of up to $650 million, and a $100 million committed revolving credit facility for Numonyx.
The press release also indicated that at closing Francisco Partners would invest $150 million in exchange for a 6.3-percent shareholding. In exchange for its contribution of its flash memory business, ST would receive 48.6 percent of Numonyx's shares and $364 million through a combination of cash and long-term subordinated interest-bearing notes.
After all, if Numonyx creation is once again delayed, we will only have to think that the longer is the wait, the greater will be the joy.