Closing a Computer-Chip Plant with a Memorable Solution

The Challenge

A computer chip manufacturer canceled plans to perform silicon wafer fabrication in North Carolina.

This left it with five buildings totaling 380,000 square feet on a 77-acre campus. The company needed to recoup its investment. Unfortunately, this was all playing out in a declining market area.

How ICON Uncovered Value

ICON offered a solution, purchasing the facility for $20,000,000 in trade creditAn alternative currency used in the corporate barter industry; one of ICON's financial options. (Note that this term is properly used only in the singular, i.e., never trade credits.) – a significant multiple-versus-market valueThe price at which both willing buyers and sellers will transact business, the highest value being full market value.. ICON then partnered with a local developer, took an equity position in the agreement and converted the facility to a biopharmaceutical research facility. This quickly induced two start-up biopharma companies to occupy the space. The financing option allowed the deal to close quickly.

Result

The chip manufacturer recovered substantial value using the trade credit toward the purchase of national and local media.