CMC Magnetics has failed to obtain government approval for its application to issue a floating five-year zero-interest unsecured ECB (euro convertible bond) worth US$150 million, but this will not influence its business operation, according to the company.
CMC originally planned to use NT$3.50 billion (US$105 million) of the ECB fund to add production equipment for 16x DVD+R/-R discs and NT$1.30 billion (US$39 million) to procure materials from abroad, the company pointed out. Without the bond, CMC has alternative fundraising sources, the company emphasized, but did not elaborate about the sources.
CMC Magnetics repaid long-term debts of about NT$8.0 billion (US$239 million) from its equity funds last quarter and has to repay other long-term debts of NT$600 million (US$18 million) this quarter, the company indicated.
Article translated by Adam Hwang and edited by Eric Mah
