Amkor Closes Offering of 9.25% Senior Notes Due 2016 and Associated Tender Offer for 9.25% Senior Notes Due 2008; Also Closes Offering of 2.50% Convertible Senior Subordinated Notes Due 2011.CHANDLER, Ariz. -- 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 ) today announced that it has closed an offering of $400 million aggregate principal amount of its 9.25% senior notes due 2016 (the "Senior Notes") together with the associated cash tender offer, dated April 28, 2006 (as supplemented) for its 9.25% senior notes due 2008. As of midnight on May 25, 2006, the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. for the tender offer, approximately $352 million aggregate principal amount of Amkor's 9.25% Senior Notes due 2008 had been tendered, all of which were accepted for payment by Amkor. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $382 million from the offering of Senior Notes were used to purchase notes that were tendered pursuant to the tender offer, and to pay the related tender premium, accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest, early tender payment and related fees and expenses. The remaining net proceeds of approximately $11 million will be used to pay other debt obligations and for working capital and general corporate purposes. Amkor also announced that it has closed an offering of $190 million aggregate principal amount of its 2.50% convertible senior subordinated notes due 2011 (the "Convertible Notes"). Amkor intends to use the net proceeds from the offering of Convertible Notes to redeem, repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. or otherwise retire a portion (or, if the underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. exercises its option to purchase additional notes in full, all) of the $200 million aggregate principal amount outstanding of Amkor's 10.5% senior subordinated notes due 2009 (together with the payment of the related premium, accrued and unpaid interest to and including the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. and related fees and expenses). Amkor intends to use any remaining net proceeds from the offering of the Convertible Notes to pay its other debt obligations and for working capital and general corporate purposes. The Convertible Notes are convertible at any time by the holders thereof into shares of Amkor's common stock at an initial conversion rate of 68.5589 shares of common stock per $1,000 principal amount of Convertible Notes (which represents an initial conversion price of $14.59 per share), subject to adjustment. As previously announced, Amkor has granted the underwriter, Citigroup Global Markets Inc., an option to purchase up to an additional $28.5 million aggregate principal amount of Convertible Notes, which is exercisable on or prior to June 9, 2006. "Our repurchase of $352 million in senior notes due 2008, coupled with the scheduled retirement of our outstanding $132 million of convertible notes at maturity on June 1, 2006, marks progress in addressing our intermediate term debt maturities," said Ken Joyce, Amkor's chief financial officer. "In connection with the retirement of a portion of the 9.25% senior notes due 2008 in the tender offer, we expect to record a charge, with no net tax effect, of approximately $23 million, or $0.11 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, in the second quarter of 2006." About Amkor Amkor Technology, Inc. (Nasdaq:AMKR) is a leading provider of advanced semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. 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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