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Amkor plans $100 million convertibles placement to buy back 5.75% notes, to obtain $100 million revolver
By Sheri Kasprzak
New York, Oct. 26 - Amkor Technology, Inc. said it plans to raise $100 million in a convertible note offering with its chairman and chief executive officer in order to buy back a portion of its 5.75% convertible subordinated notes due June 1, 2006.
The private placement is one of several financing initiatives the company is undertaking in light of a third-quarter net loss of $19 million reported Wednesday. The net loss for the third quarter is compared to a net loss of $22 million for the same period in 2004.
The precise details of the PIPE deal could not be determined on Wednesday, but Amkor's chief executive officer James Kim will be the sole investor in the offering.
Separately, Amkor is in talks to replace its existing $30 million revolving credit facility with a $100 million first-lien revolving lending facility. This new revolver is contingent upon the completion of the PIPE with Kim and would be available to retire the 2006 convertible notes at maturity.
The company is also in negotiations to raise $100 million in Asia to support operating cash requirements there.
As previously noted, the company reported its third-quarter earnings on Wednesday. Among the other highlights of the earnings report were third-quarter sales of $550 million, up 12% from the third quarter of 2004.
Based in Chandler, Ariz., Amkor produces semiconductor-packaging technologies.
On Wednesday, the company's stock slipped $0.21 to close at $4.37, but gained $0.23 in after-hours trading. The earnings report and proposed financings were announced late Wednesday.
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