Gordon Brothers Finance Company Completes $31.2 Million Term Loan Financing to SkyWater Technology Foundry

Press Release

In partnership with Gordon Brothers’ Commercial & Industrial division

Date March 16, 2017

Gordon Brothers Finance Company announced today that it has entered into a $31.2 million term loan financing transaction with SkyWater Technology Foundry, Inc. for the purchase of Cypress Semiconductor Corp.’s Bloomington, Minn., semiconductor wafer fabrication facility, Cypress Semiconductor (Minnesota) Inc.

Backed by Minnesota-based holding company Oxbow Industries, LLC, SkyWater has purchased the capital stock of the subsidiary and will operate the fab as a standalone business that will manufacture wafers for Cypress and for other semiconductor manufacturers. The operation will now operate under the name SkyWater.

“We are pleased to provide SkyWater and Oxbow with the financing to support the acquisition of the Bloomington-based business,” said Lawrence Klaff, Senior Managing Director with Gordon Brothers Finance Company.  “Thanks to our partnership with Bob Maroney of Gordon Brothers’ Commercial & Industrial division, we had a clearer understanding of the business’s underlying asset value. We look forward to supporting the ongoing operations of the company.”

Bart Zibrowski, CFO of SkyWater, added, “We were impressed with Gordon Brothers Finance Company’s efficiency and grasp of the business opportunity, as well as their ability to provide a financing solution on an efficient timeline. We look forward to our continued partnership.”

SkyWater will continue to operate out of its Bloomington, Minn., fabrication facility.

About SkyWater
SkyWater is a world-class 200mm semiconductor wafer manufacturing facility located in Bloomington, Minn.  SkyWater is the only U.S. owned and independently operated semiconductor factory accredited by the Defense Microelectronics Activity as a Category 1A Trusted Fab, enabling it to process Classified and Trusted Unclassified designs for the U.S. Department of Defense.  SkyWater is also automotive qualified, competitive with Asian foundries of similar size and technology mix, and is capable of high-volume manufacturing.  CMI has capacity for 11,000 wafers starts per month, with on-site wafer sort and failure analysis capability.  SkyWater primarily manufactures 200 millimeter semiconductor wafers and supports a specialty foundry.