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SFA Semicon Philippines Corp. (SSPC) obtained a loan from its parent company to fund capital expenditures and refinance debt.
In a disclosure to the stock exchange on Thursday, the local arm of one of Samsung Electronics Co. Ltd.’s South Korean suppliers said it received a $30-million loan from SFA Semicon Co. Ltd.
SSPC will repay the loan in full after two years and four months, with interest payable on the unpaid principal at the rate of 4.6% per annum.
Proceeds of the loan will partially fund capital expenditures and working capital requirements as well as refinance its outstanding long-term loan.
Last February, SSPC opened its $51-million manufacturing facility in Clark Freeport Zone, Pampanga where it plans to start producing the latest version of embedded multimedia cards (eMMC) found in tablets, smartphones, and GPS tracking systems.
With a gross manufacturing footprint of 18,000 square meters, the new facility forms part of the second phase of its manufacturing building in Pampanga in line with the vision to make SSPC its manufacturing hub in the region.
The company targets to accommodate service contracts from new clients with the facility.
SSPC has a business transaction agreement to supply its products to Samsung until May 2019.
Prior to the opening of the facility, SSPC was already the top export revenue-earning locator in Clark Freeport Zone. It expects to further increase its export revenues with this expansion.
Shares in SSPC were unchanged at P2.16 apiece on Thursday.
SOURCE: http://bworldonline.com/sfa-semicon-philippines-gets-30-million-loan-from-parent/