Lenders eye $1 billion credit line for Sharp: Nikkei
(Reuters) - Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ are considering a roughly 100 billion yen ($1 billion) credit facility to help electronics manufacturer Sharp Corp meet an upcoming bond redemption, the Nikkei said.
The banks are close to creating a credit line to ensure that Sharp can meet redemption requests for roughly 200 billion yen in convertible bonds maturing in September, the Japanese daily said.
In addition, the lenders will give Sharp an extension on 360 billion yen in collateralized lending that matures in June. The new lending facility will bring the total credit extended to Sharp by the two banks to around 800 billion yen, the daily said.
Sharp, which supplies Apple Inc with screens for its iPhone and iPad, will post a bigger-than-forecast net loss for the year ended March 31, in part because low output at its factories forced it to write off excess capacity, two sources with knowledge of the result told Reuters on Wednesday.
Mizuho had already announced its intention to send high-ranking officials from group firms to Sharp to serve as directors or take similar posts. Bank of Tokyo-Mitsubishi has decided to follow suit and will send former executives well-versed in rehabilitation and investing, the Nikkei said.
($1 = 97.3450 Japanese yen)
(Reporting by Aditi Shrivastava in Bangalore; Editing by Maju Samuel)