Kioxia Holdings’ lenders plan to submit a commitment letter in October for the refinancing of ¥2 trillion ($14 billion) in loans to help fund the merger with Western Digital’s flash memory business that’s still under discussion, according to people familiar with the matter.
The letter being prepared is from banks including Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group, the people said, asking not to be identified because the matter is private. The move would mark a step forward in the merger, which has faced months of delays.
Of the ¥2 trillion refinancing, ¥400 billion will likely be funded through loan commitments. For the ¥1.6 trillion loan, ¥1.3 trillion will probably be equally split among the three megabanks, while the Development Bank of Japan will provide the remaining ¥300 billion loan.