Elpida Memory announced that it has established credit facilities having a total value of $847 million, of which $423.6 million is a syndicated facility consisting of term loans with a commitment period to support planned capital expenditures. The other $423.6 million consists of individual short-term commitment facilities with the company'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.

The company also entered into a $423.6 million long-term loan agreement to help fund its FY 2005 capital expenditures. The loan consists of two portions: a partial drawdown of $254 million from the syndicated facility established in March 2005 and a new loan agreement of $169 million with the Development Bank of Japan.

Elpida expects the financing options and long-term loan arrangements to enable the company to react more flexibly to capital expenditure decisions that are essential for the its growth.