Amkor Technology units enter into ¥26 billion term loan, new revolver

By Sarah Lizee

Olympia, Wash., July 19 – Amkor Technology, Inc. indirect wholly owned subsidiary J-Devices Corp. entered into a ¥26 billion syndicated term loan agreement with Sumitomo Mitsui Banking Corp. on July 13, according to an 8-K filing with the Securities and Exchange Commission.

The term loan bears interest at about 1.3% per year.

Principal is due in 20 equal quarterly installments plus accrued interest, through the maturity date of July 18, 2023.

The term loan may be prepaid without penalty, subject to breakage costs.

Proceeds of the term loan may be used for the repayment of debt or other general corporate purposes. Amkor currently plans to use part of the proceeds to redeem all $200 million of its outstanding 6 5/8% senior notes due 2021.

Sumitomo is the arranger with Development Bank of Japan Inc. as co-arranger.

Also on July 13, Amkor replaced its existing senior revolving credit facility dated as of June 28, 2012 with a new revolving credit facility with Bank of America, NA as agent. Subsidiary Amkor Technology Singapore Holding Pte., Ltd. is the borrower on the new revolver.

The company said the terms of the new revolver are substantially the same as the old facility, except that, among other things, availability under the new revolver was increased to $250 million from $200 million, and the termination date was extended to July 2023 from December 2019.

Bank of America is the lead arranger and bookrunner. DBS Bank Ltd. is the documentation agent.

The semiconductor company is based in Chandler, Ariz.

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