Amkor Amends Bank Credit Agreement & Repays $125 Million in Debt.Business Editors CHANDLER, Ariz.--(BUSINESS WIRE)--Nov. 8, 2001 Amkor Technology Amkor Technology, Inc. (NASDAQ: AMKR) is a high-tech semiconductor product manufacturer that includes Intel and IBM among its primary customers. Previously headquartered in West Chester, Pennsylvania, United States, Amkor recently announced that it will move to Chandler, , Inc. (Nasdaq:AMKR AMKR Amkor Technology ) said that its banks and lenders have consented to amend the Company's secured credit agreement. Effective September 30, 2001, the Amendment replaces the existing financial covenants from the 3rd quarter of 2001 through the 4th quarter of 2002 with covenants based on minimum liquidity, maximum capital expenditures and minimum levels of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become . The existing credit agreement includes a $223 million Term Loan B due 2005 and a $200 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. In connection with this amendment, Amkor elected to pay down the Term Loan B from $223 million to $98 million and reduce the revolving credit facility from $200 million to $100 million. There are no borrowings outstanding under the revolving credit facility. "With the cooperation of our banks and lenders, we believe we have crafted an amendment that will provide Amkor with the flexibility necessary to manage through the current industry downturn," said Ken Joyce, Amkor's Chief Financial Officer. "With approximately $200 million in cash after paying down $125 million of the term loan, together with an additional $100 million available under the revolver, we continue to have solid liquidity," said Joyce. Amkor is the world's largest provider of contract microelectronics assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services, including deep sub-micron wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. ; wafer probe, wafer mapping, characterization and reliability testing; IC packaging design and assembly; multi-chip module A Multi-Chip Module or MCM is a specialized electronic package where multiple integrated circuits (ICs), semiconductor dies or other modules are packaged in such a way as to facilitate their use as a single IC. design and assembly; and final testing. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com. |
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