Intel Corp (NASDAQ: INTC) and Canada's Brookfield Asset Management (NYSE: BAM) on Tuesday agreed to jointly fund up to $30 billion for the U.S. company's chip factories in Arizona. The move fuels Intel's ambition to bring more chip production onshore without weighing on its balance sheet, reports Reuters.
Brookfield's infrastructure affiliate will invest up to $15 billion for a 49 percent stake in the expansion project. Intel will retain majority ownership and operating control of the two chip factories meant to make advanced chips in Chandler, AZ.
The investment is an expansion of an agreement signed by Intel and Brookfield in February to explore finance options to help fund new Intel manufacturing sites.
The two companies didn't disclose specific terms, though parties expect the deal to close by the end of this year. David Zinsner, Intel's finance chief, told analysts the interest rate was between 4.4 percent and 8.5 percent, which is more expensive than debt financing but cheaper than equity financing, according to Reuters. Continue Reading |
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