Amkor refinances $300 million term loan

By Jennifer Chiou

New York, April 2 - Amkor Technology Inc. said that its wholly owned Korean subsidiary, Amkor Technology Korea, Inc., has entered into a $300 million seven-year secured credit facility with Woori Bank, which will be used to repay its existing $300 million second-lien term loan due October 2010.

The existing facility bears interest at Libor plus 450 basis points.

The newly obtained loan will be guaranteed on an unsecured basis by Amkor.

The loan bears interest at Woori's base rate plus 50 bps, which currently is 6.6%, or about Libor plus 125 basis points, and amortizes in 28 equal quarterly payments through April 2014.

Amkor said that the Woori loan remains subject to the approval of the Bank of Korea.

"In commencing this relationship with Woori Financial Group, we are expanding our banking relationships to include a strong financial partner in Asia," senior vice president Joanne Solomon of finance said in a news release.

"We are pleased with the structure and terms of this facility, which should allow us to substantially reduce our annual interest expense."

Amkor Technology is a Chandler, Ariz.-based provider of contract semiconductor assembly and test services.

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