GB Merchant Partners Provides $60 Million DIP to Qimonda.

Press Release

BOSTON, MA – Qimonda, one of the world’s leading suppliers of semiconductor memory products, recently secured a $60 million DIP Term Loan from GB Merchant Partners, the debt and equity affiliate of Gordon Brothers Group. GB Merchant Partners acted as the Sole Lead Arranger, as well as the Administrative and Collateral Agent.

The DIP financing will allow Qimonda North America Corp., which filed for creditor protection under Chapter 11 of the Bankruptcy Code on February 20, 2009, to focus on the orderly disposition of its semiconductor manufacturing assets in Sandston, Virginia.

“This loan facility gives Qimonda the leeway needed to maximize value for the estate and potentially find a going concern buyer,” stated Gary Prager, Managing Director at GB Merchant Partners.

Qimonda’s Sandston facility had been used for DRAM production with volumes of approximately 9,500 300mm wafers per week and approximately 12,000 200mm wafers per week. The 300mm fab, which cost approximately $3 billion to build in 2005, has been qualified down to the 65nm technology node while the 200mm fab has been qualified down to 80nm. The world-class 300mm operational tool line includes nearly 500 advanced manufacturing tools of 2005 vintage and newer. Though production has ceased, Qimonda has taken care to insure that all manufacturing assets in the facilities have been idled down into a “warm” state and immaculately maintained so that volume production could be restarted immediately by a potential purchaser who would choose to take over the facility operationally.

About GB Merchant Partners
GB Merchant Partners (www.gbmerchantpartners.com), the investment management affiliate of Gordon Brothers Group with over $500 million of capital under management, focuses on private equity, structured debt and secondary debt investments. Debt investments are made as structured loans in the form of junior secured, “Tranche B” or enterprise value loans, ranging from $10 to $50 million, to middle-market companies in the distribution, wholesale, industrial, retail, consumer products and real estate sectors. Equity investments are made through the 1903 Equity Fund, which takes majority and minority equity positions in middle-market retail and consumer products companies.