Elpida Draws on Syndicated Loan
Arranged Through Major Banks and DBJ Loan
TOKYO, JAPAN, September 30, 2009 – Elpida Memory today announced that it had contracted with financial institutions to create a loan facility according to a business restructuring plan that was approved last June by Japan's Ministry of Economy, Trade and Industry in accordance with the Law on Special Measures for Industrial Revitalization. Today Elpida made a drawdown on the loan facility, which consists of a 100 billion yen syndicated loan by Japanese financial institutions arranged by the company's core bank lenders and a loan of 10 billion yen from the Development Bank of Japan, Inc. (the "DBJ"), for total available loans of 110 billion yen.
The syndicated loan and the DBJ loan enable Elpida to maintain its leading technology position in the industry and improve productivity, by allowing the company to invest in the research & development of its mainstay Premier DRAMs and advanced semiconductor manufacturing equipment, as well as strengthen its financial base. As a result of the loan financing, Elpida believes that it can make additional progress executing its business restructuring plan.
The two loan arrangements come with financial covenants and preconditions that are based on Elpida's continuance and execution of its business restructuring plan. Also, Elpida has provided security for the syndicated loan.
Below is an overview of the syndicated loan and the DBJ loan.
| Loan Type | Syndicated Loan | DBJ Loan |
|---|---|---|
| Loan contract date | September 25, 2009 |
|
| Loan amounts | 100 billion yen |
10 billion yen |
| 1st stage loan financing date | September 30, 2009 |
|
| 1st stage loan financing amount | 40 billion yen |
4 billion yen |
| 2nd stage loan financing date (planned) | March 31, 2010 |
|
| 2nd stage loan financing amount (planned) | 60 billion yen |
6 billion yen |
| Final repayment due date | April 2, 2012 |
|
| Repayment method | 1/9th every six months following end-September 2010 and 2/3rds on final due date |
In full upon final due date |
| Lending financial institutions | – Sumitomo Trust & Banking Co., Ltd. – Mizuho Corporate Bank, Ltd. – Sumitomo Mitsui Banking Corporation – The Bank of Tokyo-Mitsubishi UFJ, Ltd. and 10 other financial institutions |
Development Bank of Japan, Inc. |
About Elpida
Elpida Memory, Inc. (Tokyo: 6665) is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company's design, manufacturing and sales operations are backed by world class technological expertise. Its 300mm manufacturing facilities, consisting of its Hiroshima Plant and a Taiwan-based joint venture, Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida's portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phones and digital consumer electronics. More information can be found at http://www.elpida.com.
Information in this news release is current as of the timing of the release, but may be revised later without notice.