Amkor Technology, Inc. (Nasdaq: AMKR) today announced that it has issued
a notice for the redemption of all $345 million aggregate principal
amount of the Company’s outstanding 7.375% Senior Notes due 2018 (the
“Notes”) to be effected on June 19, 2015. In accordance with the terms
of the indenture governing the Notes, the redemption price will be
101.844% of the principal amount of the Notes, or $1,018.44 per
$1,000.00 principal amount thereof, paid in cash. In addition, the
Company will pay accrued and unpaid interest on the Notes to, but
excluding, the redemption date.
The Company plans to fund the redemption of the Notes with borrowings
under the Company’s credit facilities and cash on hand. The new
borrowings bear interest at floating rates tied to LIBOR and, based on
current interest rates, it is estimated that the redemption would result
in potential annualized interest savings of approximately $17 million.
The Company also expects to record a one-time charge in the second
quarter of 2015 of approximately $9 million for early extinguishment of
debt.
A notice of redemption is being sent to all currently registered holders
of the Notes by U.S. Bank National Association, the trustee under the
indenture governing the Notes. Copies of the notice and additional
information relating to the procedure for redemption may be obtained
from U.S. Bank National Association by calling 1-800-934-6802
(toll-free).
About Amkor
Amkor is a leading provider of semiconductor packaging and test services
to semiconductor companies and electronics OEMs. More information on
Amkor is available from the company's SEC filings and on Amkor's
website: www.amkor.com.
Forward-Looking Statement Disclaimer
This announcement contains forward-looking statements within the meaning
of federal securities laws. All statements other than statements of
historical fact are considered forward-looking statements including,
without limitation, statements regarding the completion of the
redemption, the potential interest savings and the charge for early
extinguishment of debt. These forward-looking statements involve a
number of risks, uncertainties, assumptions and other factors that could
affect future results and cause actual results and events to differ
materially from historical and expected results and those expressed or
implied in the forward-looking statements, including, but not limited
to, the fact that an increase in the floating interest rates under the
Company’s credit facilities would decrease the potential interest
savings from the redemption and those discussed in Amkor’s Annual Report
on Form 10-K for the year ended December 31, 2014, and in its subsequent
filings with the Securities and Exchange Commission made prior to or
after the date hereof. Amkor undertakes no obligation to review or
update any forward-looking statements to reflect events or circumstances
occurring after the date of this announcement.
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