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Substrate and epiwafer supplier IQE plc of Cardiff, UK has appointed Lloyds TSB Corporate Markets as its principal banker and agreed new, significantly increased banking facilities that provide funding of up to £15.5m (a term loan of up to £8.5m and a working capital facility of up to £7m). This replaces existing UK loans of £3.7m and a UK overdraft facility of £4m, representing additional headroom of almost £8m to finance continued growth. In addition, IQE retains its overseas working capital facility of £1m.

“Given current macro economic conditions, this new funding facility demonstrates the confidence that exists in IQE’s business model, its markets and its management team,” says chief financial officer Phil Rasmussen.

“We view IQE as a high-performing business that has established an enviable position within the international compound semiconductor wafer market,” says Andrew Hunter of Lloyds TSB’s Fast Growth Team.

“Through careful acquisition, the management of IQE has established a market-leading business which is very well placed for continued growth,” adds Jason Evans, area director and head of Lloyds TSB Corporate Markets for South Wales.

Acquisitions made during 2006 include the epiwafer foundries MBE Technology Pte Ltd of Singapore and IQE RF LLC of Somerset, NJ, USA (formerly Emcore’s Electronic Materials & Device division).

In a trading update on 17 January, IQE said that it expected to report revenues of about $100m for 2007 (up 65% in dollar terms on 2006).

See related items:

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IQE wins multi-year contract as preferred epi supplier to Anadigics

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