Dec. 14 (Bloomberg) -- Sino-American Silicon Products Inc. plans to sign a loan of about $360 million equivalent by the end of the year to fund the purchase of Covalent Materials Corp’s wafer unit, said a person familiar with the matter who declined to be identified because the details are private.
The loan is split into yen and Taiwan dollar portions, another person with direct knowledge of the lending said on Nov. 4. Sino-American wants to borrow yen to build relationships with banks that will lend the Japanese currency in the long-term, the person said.
Sino-American agreed to acquire the wafer unit of Covalent Materials, a Japanese technology company, for 35 billion yen ($449 million) in August to gain market share in Asia’s second-biggest economy.
The Taiwanese company hired Citigroup Inc. in September to arrange the five-year loan, which pays a so-called all-in fee of just over 100 basis points area the commercial paper rate for the Taiwan dollar portion, a person familiar with the matter said at the time.
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