Sat, Apr 14, 2018 - Page 12 News List

TPK hopes to fund operations with
a syndicated loan

CASH FLOW:The firm’s capital spending for this year is 62 percent more than last year, marking the first significant increase in the past three years

By Lisa Wang  /  Staff reporter

TPK Holding Co (宸鴻), which supplies touch modules for Apple Inc’s smartwatches and iPads, on Thursday said it plans to raise between US$120 million and US$200 million via a syndicated loan in order to repay debts and fund company operations in the midterm.

Mega International Commercial Bank (兆豐銀行) would lead arrangements for the syndicated loan, TPK said in a filing with the Taiwan Stock Exchange.

TPK did not provide details about how it would use the proceeds.

The company in February said it planned to spend NT$7.5 billion (US$256 million) this year primarily to expand its lamination capacity and buy new equipment, in order to cope with new product launches by some of its major clients in the second half of this year.

Apple is TPK’s biggest client, contributing 70 percent of the firm’s revenue.

TPK’s capital spending for this year is 62 percent greater than last year’s NT$4.63 billion, marking the first significant increase over the past three years after the company’s restructuring efforts.

The company posted NT$20.85 billion in revenue for last quarter, down 36.6 percent from NT$32.87 billion in the fourth quarter of last year. The figure matched TPK’s estimate in February.

TPK is scheduled to hold a quarterly investors’ conference on May 3 to share its financial figures for last quarter.

TPK chief executive officer H.H. Chiang (江懷海) is to make his first public appearance since assuming the position in September last year.

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