MagnaChip to invest $65M-$70M to upgrade its Gumi manufacturing facility

In connection with the company’s strategy to focus exclusively on its Power business, Magnachip (MX) expects to invest approximately $65M-70M over three years to optimize and upgrade the company’s Gumi manufacturing facility. Magnachip recently disclosed it executed a $26.5M Equipment Financial Credit Agreement, which provides for loans, secured by certain existing assets, to partially fund the company’s capital expenditures. The loans feature an interest rate of 3.97%, which is adjusted quarterly, and a 10-year maturity, structured with an initial two year period of interest-only payments, followed by eight years of amortizing payments. These loans will help the company invest in new equipment to upgrade and optimize its Gumi manufacturing facility, which the company expects will have a positive impact on its product roadmap while also efficiently managing cash on the balance sheet.