Spansion Mulls Alternatives; Skips Payment On Notes

Some interesting comment I found from some blogs....

Will Spansion and Numonyx merge??

http://blogs.barrons.com/techtraderdaily/2009/01/15/spansion-mulls-alternatives-skips-interest-payment-on-notes/?mod=yahoobarrons

January 15, 2009, 9:53 am

Spansion Mulls Alternatives; Skips Payment On Notes

Posted by Eric Savitz

Spansion (SPSN) this morning said it has been exploring strategic alternatives, including the possible merger or sale of the company, which makes NOR flash memory chips. The company has hired Barclays Capital as a financial adviser.

The company also said it has begun discussions on “potential balance sheet restructuring opportunities,” and will delay making the interest payment due today on its 11.25% senior notes due 2016. Spansion said that under the indenture governing the notes, a failure to make an interest payment is subject to a 30-day cure period.

Spansion this morning is up a penny, or 6.9%, to 19 cents.

Comments

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Francisco Partners ought to be very interested in Spansion. The private equity firm Francisco Partners is part-owner of Numonyx. With a merger, Spansion and Numonyx can stop the price war in high-density NOR flash, have better control over supply, and completely dominate multi-bit per cell NOR flash (MirrorBit and StrataFlash). EcoRAM and ORNAND2, if they work, would be additional bonuses.

Comment by CLiHsing - January 15, 2009 at 1:48 pm