Elpida Memory Establishes JPY 100 Billion in Financing Options; JPY 50 Billion Long-term Loan for Capital Expenditures
TOKYO, JAPAN, March 31, 2006 - Elpida Memory, Inc (Elpida), Japan's leading supplier of Dynamic Random Access Memory (DRAM), today announced that it has established credit facilities having a total value of JPY100 billion, of which JPY 50 billion is a syndicated facility consisting of term loans with a commitment period to support planned capital expenditures and JPY 50 billion consists of individual short-term commitment facilities with Elpida's four major banks to supplement short-term working capital requirements.
Under the terms and conditions of the syndicated facility, Elpida may execute term loans with a maturity date of March 2011 during the first two years. Compared with a similar facility established in March 2005, this newest facility assures more stable and rapid funding of capital investments having a one-year longer commitment and borrowing period.
Elpida has also entered into a JPY 50 billion long-term loan agreement to help fund its FY 2005 capital expenditures. The loan consists of two portions: a partial drawdown of JPY 30 billion from the syndicated facility established in March 2005 and a new loan agreement of JPY 20 billion with the Development Bank of Japan.
These financing options and long-term loan arrangements are expected to enable Elpida to react more flexibly to capital expenditure decisions that are essential for the company's growth.
Summary of Facilities
| Type | Term loans with a commitment period (Syndicated) | Short-term commitment facilities (Individual) |
|---|---|---|
| Purpose of funds | Capital expenditures | Short-term working capital |
| Total amount | JPY 50 Billion | JPY 50 Billion |
| Commitment period | 2 years till March 2008 | 1 year till March 2007 |
| Maturity date of loans | March 2011 | March 2007 |
| Arrangers | The Sumitomo Trust & Banking Mizuho Corporate Bank Sumitomo Mitsui Banking Corporation Bank of Tokyo-Mitsubishi UFJ |
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| Agent | Bank of Tokyo-Mitsubishi UFJ | — |
| Lenders | 26 financial institutions including arrangers | The Sumitomo Trust & Banking Mizuho Corporate Bank Sumitomo Mitsui Banking Corporation Bank of Tokyo-Mitsubishi UFJ (JPY 12.5 Billion each) |
About Elpida Memory, Inc.
Elpida Memory, Inc. is a manufacturer of Dynamic Random Access Memory (DRAM) silicon chips with headquarters based in Tokyo, Japan, and sales and marketing operations located in Japan, North America, Europe and Asia. Elpida's state-of-the-art semiconductor wafer manufacturing facilities are located in Hiroshima, Japan. Elpida offers a broad range of leading-edge DRAM products for high-end servers, mobile phones, digital television sets and digital cameras as well as personal computers. Elpida had sales of ¥207.0 billion during the fiscal year ending March 31, 2005.
Information in this news release is current as of the timing of the release, but may be revised later without notice.