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Powerchip to get PTI-Kingston loan

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CIOL Bureau
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TAIPEI, TAIWAN: Powerchip Semiconductor Corporation (PSC) is all set to receive a US$125 million loan from Powertech Technology (PTI) and Kingston Technology. Powertech and Kingston have come together to extend this loan to Powerchip Semiconductor Corp.

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A notification filed in the Taiwan Stock Exchange by PTI says that it will lend an amount close to 13.6 per cent of the total funding. This would be close to NT$17 million.

PSC has been asked to collateralize its stake in Rexchip Electronics, which should be adequate enough to repay 100 per cent of the loan, it is believed.

It may be recalled that recent news paper reports had said that Powerchip Semiconductor, which had got the approval from bondholders for resetting the conversion price for its ECBs due on June 17, 2009, still had debts worth NT$10 billion (US$303.5 million) due by the end of the year.

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The new loan from PTI and Kingston is expected to help Powerchip Semiconductor shrug of its blues at least for now.

Meanwhile, the PTI-Kingston loan will be for a year and would attract an in interest rate of 3.25 per cent. PSC had been maintaining a long-term partnership with the DRAM chipmaker PTI and the loan comes as a help.

 Further, the board at PTI has also gave green signal to the plans aiding PSC to redeem ECBs that were purchased a year ago. PTI and Kingston had, in last July, subscribed to PSC bonds worth NT$500 million and NT$1 billion, respectively.

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