Qualcomm Gets Early Repayment of Vendor Loan

Qualcomm has said that Mexico's Pegaso Comunicaciones y Sistemas, a wholly owned subsidiary of Pegaso Telecomunicaciones has prepaid in full to Qualcomm the principal amount of all outstanding loans owed under an equipment loan facility, in addition to accrued interest.

The principal amount of the prepayment was US$192 million, which includes a 2 percent discount as part of an early prepayment agreement. Notwithstanding the discount, Qualcomm will recognize US$10 million in deferred interest income as a result of the prepayment.

Qualcomm's prior guidance for Qualcomm Strategic Initiatives (QSI) segment for fiscal 2004 was a net cash investment of US$250 million. As a result of this cash prepayment, Qualcomm's revised guidance for QSI for fiscal 2004 is a net cash investment of US$60 million.

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Posted to the site on 18th December 2003