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Amkor Technology likely to continue repurchasing outstanding notes
By Jennifer Lanning Drey
Portland, Ore., May 20 - Amkor Technology Inc. is likely to continue using cash to buy back bonds in the debt market as it has done over the past year, Joanne Solomon, chief financial officer of Amkor, said Wednesday during a presentation at the JPMorgan Annual Technology Conference in Boston.
At the same time, Solomon said Amkor is no longer operating under the assumption of open access to the capital markets and is maintaining higher levels of cash as a result.
The company needs a minimum of about $200 million of cash and $100 million of revolver availability to be comfortable with its liquidity position, she said.
Solomon also noted that Amkor targets gross debt of less than $1 billion.
During the first quarter, Amkor increased its leverage with a $240 million five-year convertible offering, which was done in an effort to make investors comfortable with the company's approximately $250 million of debt maturing in 2011, she said.
Solomon said she is comfortable with the company's current leverage based on the level of EBITDA it generates.
Amkor has also reduced spending during the past year and will focus capital spending going forward on making investments in advanced technologies that support applications where its customers have shown interest, she said.
Chandler, Ariz.-based Amkor is a semiconductor test and assembly service provider.
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