Dynex Announces New Loan Agreement with CSR Times Electric
New Loan Replaces Two Existing Loans and Provides Some Additional Liquidity to the Group
Lincoln, England, August 25th, 2015 – Dynex Power Inc., a leading specialist high power semiconductor company, today announced that its subsidiary, Dynex Semiconductor Ltd, had borrowed £6 million from Zhuzhou CSR Times Electric (Hong Kong) Co., Ltd. The loan will be used to repay an existing HK$8m loan from the same company, to repay an existing CNY 31m from Zhuzhou CSR Times Electric Co., Ltd which was lent to Dynex in the UK via Dynex Power Inc. and to provide the company with some additional liquidity. The loan carries interest at 4% per annum and is repayable in ten equal biannual installments starting in December 2015.
Bob Lockwood, Chief Financial Officer commented, “This new loan provides Dynex in the UK with approximately £2m of additional liquidity and also enables us to repay two existing loans. Taking the new loan in Sterling eliminates any foreign exchange exposure in the UK and the new structure reduces withholding taxes on the interest. The loan is at a competitive rate which will lower our borrowing costs going forward.”
About the Company
Dynex designs and manufactures high power bipolar semiconductors, high power insulated gate bipolar transistor (IGBT) modules, high power electronic assemblies and radiation hard silicon-on-sapphire integrated circuits (SOS IC’s). The company’s power products are used worldwide in power electronic applications including electric power transmission and distribution, renewable and distributed energy, marine and rail traction motor drives, aerospace, electric vehicles, industrial automation and controls and power supplies. Our IC products are used in demanding applications in the aerospace industry. Dynex Semiconductor Ltd is its only operating business and is based in Lincoln, England in a facility housing the fully integrated silicon fabrication, assembly and test, sales, design and development operations. Dynex is majority owned by Zhuzhou CSR Times Electric Co., Ltd.
Zhuzhou CSR Times Electric Co., Ltd. is based in Hunan Province in the People's Republic of China. It is listed on the Hong Kong Stock Exchange. CSR Times Electric is mainly engaged in the research, development, manufacture and sales of locomotive train power converters, control systems and other train-borne electrical systems, as well as the development, manufacturing and sales of urban railway train electrical systems. In addition, CSR Times Electric is also engaged in the design, manufacturing and sales of electric componentsincluding power semiconductor devices for the railway industry, urban railway industry and non-railway purposes.
Information about Dynex Semiconductor Ltd and its products can be found atwww.dynexsemi.com.
Further information on CSR Times Electric can be found at www.timeselectric.cn/en
All monetary values expressed in this release are in Canadian Dollars unless stated otherwise.
The TSX Venture Exchange has neither approved nor disapproved of the information in this press release.