ChipMOS to exchange $54 million 1.75% convertibles, plans $10 million placement

By Jennifer Chiou

New York, Sept. 29 - ChipMOS Technologies (Bermuda) Ltd. said that it entered into two separate privately negotiated transactions to exchange a total of $54 million of its 1.75% convertible senior notes due 2009.

Also, the company entered a separate private placement transaction through which it expects to raise $10 million.

In the first exchange, the company will issue $15.75 million of new 10% convertible notes due 2014 to an institutional investor for $45 million of the existing convertibles.

The new notes will be convertible at a conversion price of $1.50 per share.

In the second transaction, ThaiLin Semiconductor Corp., a subsidiary that is 42.9% owned by the company's wholly owned subsidiary, ChipMOS Technologies Inc., will exchange $9 million of the existing convertibles for $3.15 million of the new 10% notes as well as $5.85 million of new 8% convertible notes due 2014.

In the placement, ThaiLin will purchase $10 million of the 8% notes at face value.

The new 8% notes will be convertible into common shares at $1.25 per share.

The transactions are expected to close in October.

ChipMOS said that it is continuing in its efforts to improve its financial strength and build on agreements announced on April 15 that extended key repayment terms and conditions of the its bank loans from Taiwan creditors.

The company is a Hsinchu, Taiwan-based semiconductor test and assembly services provider for liquid-crystal and flat-panel display semiconductors.

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