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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: thecalculator who wrote (20834)	9/7/2001 12:14:32 AM
From: thecalculator	Respond to of 60323

But Zeev, a large portion of that $500MM you are referring to is to go toward capital improvements after the fab is already in operation...you know, to take it down to 0.13 micron, etc. For example, from their recent 20F we read: “Credit Facility: In January 2001 we entered into a credit facility with two leading Israeli banks pursuant to which the banks committed to make available to us up to $550 million of loans for the Fab 2 project. The loans may be drawn down through December 2004 and are repayable in quarterly installments over four years commencing two years after the date of any such drawdown is received….” From the above are two key points: 1. They don’t have to start paying on the loan (in quarterly payments) until after the foundry is already in operation, and then they have four years to pay back any loaned amount. 2. They say ”up to $550 million” . In actuality, they indicated that being in the current trough of the semi-cycle is affording the opportunity to get decent prices for CAPEX, and so they may not need the full $550 million.