Amkor amends loan, changing capital expenditures covenant and allowing for securities repurchases

By Sara Rosenberg

New York, Oct. 20 - Amkor Technology Inc. amended its credit facility, increasing the maximum permitted annual capital expenditures, allowing for the repurchase or redemption of any senior notes, senior subordinated notes or convertible notes with net cash proceeds of equity offerings and increasing the basket for permitted investments to $50 million from $25 million.

More specifically, allowable capital expenditures have been increased to the greater of $250 million or 50% of EBITDA, not to exceed $350 million.

The $200 million senior secured credit facility consists of a $170 million term loan maturing Jan. 31, 2006 and a $30 million revolver that expires Oct. 31, 2005.

"This amendment provides Amkor with added flexibility to make investments in leading-edge assembly and test equipment to support growing customer demand for advanced package and test solutions," said Ken Joyce, chief financial officer, in a news release.

Amkor is a West Chester, Pa. provider of contract semiconductor assembly and test services.

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