By Paul A. Harris
St. Louis, March 9 - Amkor Technology Inc. priced a restructured $250 million offering of seven-year senior notes (B1/B) Tuesday at 99.321 with a 7 1/8% coupon to yield 7¼%, a syndicate source said.
Price talk was in the area of 7%.
Citigroup ran the books on the Rule 144A/Regulation S issue. Deutsche Bank Securities and JP Morgan were joint lead managers.
The tenor of the notes was shortened to seven years from 10 years. Also the issuer extended call protection for the life of the bond, with a Treasuries plus 50 basis points make-whole call provision. Previously the notes were expected to come with only five years of call protection.
Proceeds will be used to repay bank debt and for general corporate purposes, including capital expenditures.
The issuer is a West Chester, Pa.-based provider of semiconductor assembly and test services.
| Issuer: | Amkor Technology Inc.
|
| Amount: | $250 million
|
| Maturity: | March 15, 2011 (restructured from original 10-year maturity)
|
| Security description: | Senior notes
|
| Bookrunner: | Citigroup
|
| Joint lead managers: | Deutsche Bank Securities, JP Morgan
|
| Coupon: | 7 1/8%
|
| Price: | 99.321
|
| Yield: | 7¼%
|
| Call: | Treasuries plus 50 basis points make-whole call (restructured from previously announced non-call-five structure)
|
| Equity clawback: | Until March 15, 2007 for 35% at 107.125
|
| Pricing date: | March 9
|
| Settlement date: | March 12
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Price talk: | 7% area
|
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