Switzerland-based STMicroelectronics (NYSE: STM ) and the European Investment Bank have come to terms on a new $451 million loan, STMicroelectronics announced today. The loan is available to STMicroelectronics in either euros or U.S. dollars, and it can access the funds at any time before September 2014. News of the new loan follows STMicroelectronics' announcement on March 17 that it has repaid $451 million in senior debt, using existing cash.
The new loan, when accessed, will be used to help finance continued R&D activity, primarily in STMicroelectronics' Italian sites. The $451 million loan is in addition to STMicroelectronics' $1.19 billion in cash, as of its most recent quarter, and existing credit lines of $490 million.