Axcelis looking to refinance as part of restructuring plans

By Angela McDaniels

Tacoma, Wash., Oct. 22 - Axcelis Technologies, Inc. said it plans to refinance its long-term debt and that refinancing plans with a group of interested banks are expected to close in the fourth quarter.

Proceeds will be used to repay convertible debt due in January and to secure enough liquidity to finance ongoing operations through a prolonged downturn in the semiconductor market, according to a company news release.

The refinancing is part of a two-pronged restructuring plan announced by the company on Wednesday.

The other component of the plan is a 14% reduction in Axcelis' workforce. The company expects that this, along with other cost-out initiatives, will result in savings of $40 million annually.

"We are pleased to have our refinancing plans well underway and intend to complete this transaction shortly. This restructuring, while difficult, was driven by the continued slowdown in the semiconductor market," chairman and chief executive officer Mary Puma said in the release.

"Axcelis is committed to delivering improved financial results and these actions allow us to better align operating costs with near-term revenue expectations."

Axcelis is a Beverly, Mass.-based maker of ion implantation and cleaning systems and other processing equipment used to make semiconductor chips.

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