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Amkor Technology accepts $125.72 million of its 9¼% notes in tender
By Devika Patel
Knoxville, Tenn., June 22 - Amkor Technology Inc. said a total of $125.72 million of its $390 million in 9¼% senior notes due 2016 were tendered by the expiration of its cash tender offer at 11:59 p.m. ET on Monday. The offer began on May 24.
The purchase price was $1,050 for each $1,000 principal amount of the notes, plus interest up to, but excluding, the payment date. This includes an early tender premium of $30.00 for each note tendered by the early tender date. The company reported on June 7 that it had received early tenders for $123.55 million of notes by the early tender deadline of 5 p.m. ET on June 7.
The company is funding the offer with proceeds from a $180 million term loan by Woori Bank to the company's wholly owned Korean subsidiary. It expects to recognize a loss of about $17 million in the second quarter associated with the purchase of these notes and the June 3 redemption of its 7 1/8% senior notes due 2011 and its 7¾% senior notes due 2013.
"We are pleased with the results of the tender offer and its successful conclusion," Amkor's executive vice president and chief financial officer Joanne Solomon said in a press release.
"This tender offer is the latest example of our continued success in capitalizing on market opportunities to enhance our liquidity, strengthen our balance sheet and reduce our interest expense. By refinancing a portion of our 9¼% senior notes due 2016 with the proceeds of a floating-rate foreign term loan currently bearing interest at 4.5%, we expect to reduce interest expense over the next 12 months by approximately $6 million."
Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) is the dealer manager for the offer.
Amkor is a Chandler, Ariz.-based provider of semiconductor assembly and test services to semiconductor companies and electronics original equipment manufacturers.
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