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Toshiba in turmoil

Toshiba Memory secures funding to buy back shares from Apple

Chipmaker raises $12bn as it prepares for stock market debut this year

Toshiba Memory has secured 1 trillion yen in loans from Japan's top three banks.

TOKYO -- Japanese chipmaker Toshiba Memory Holdings will procure 1.3 trillion yen ($11.8 billion) primarily through bank loans to repurchase preferred shares held by Apple and other U.S. tech companies ahead of a stock market debut later this year.

Toshiba Memory will take on 900 billion yen in loans from Sumitomo Mitsui Banking Corp., MUFG Bank and Mizuho Bank. Another 100 billion yen will come in the form of an additional commitment line, while 300 billion yen will be procured through an allotment of preferred shares to the Development Bank of Japan.

Apple and three other American technology companies hold preferred stock in Toshiba Memory as they were part of the group led by Bain Capital that took over the chipmaker from the parent.

Toshiba Memory is expected to apply for an initial public offering on the Tokyo Stock Exchange around September, with the listing to come in November at the earliest. But high stakes held by clients would likely count against an IPO candidate during screening.

Much investment capital is needed to survive in the memory chip market. Toshiba Memory is preparing itself for a stock listing at an optimal timing.

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