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Like we said, deals are flying. SMART gets $125M

SMART Modular Technologies, a Silicon Valley (Fremont) provider of memory products, in a deal we haven't quite fully comprehended, has just announced $125 million in "new financing," apparently from the sale of debt, and an additional $35 million line of credit. Texas Pacific Group and Francisco Partners are involved.

UPDATE: See comment, below, for how the transaction worked.


It is not hard to understand. The private equity shops bought Smart for $100m, stabilized the company, and placed $125m of debt in the public markets. They used $65m of the proceeds for a dividend to shareholders. It is a typical private equity deal.

This was reported by Private Equity Week a couple weeks ago. http://hosting.mansellgroup.net/enablemail/ThomsonNewLetter/HostedWires/NewsLetters/March11.htm

Anonymous on March 29, 2005 3:10 PM
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