Siliconware Precision convertible bonds to be convertible into cash

By Marisa Wong

Morgantown, W.Va., March 27 – Siliconware Precision Industries Co., Ltd. said holders of its zero-coupon convertible bonds due 2019 will be able to convert their bonds into cash.

Siliconware will combine with Advanced Semiconductor Engineering, Inc. under a joint share exchange agreement, and Advanced Semiconductor will incorporate a new holding company, ASE Industrial Holding Co., Ltd. Siliconware will become a wholly owned subsidiary of ASE Industrial Holding upon completion of the share purchase, which is expected to be on April 30.

Advanced Semiconductor and ASE Industrial Holding Co., Ltd. will then become co-obligors of the company’s obligations under the indenture governing the convertible bonds, and the companies will agree to pay cash proceeds to bondholders who exercise their conversion rights.

The conversion price used to determine the cash consideration will be NT$44.1443 per share.

The company issued $400 million of the convertibles in October 2014.

Taichung, Taiwan-based Siliconware is a semiconductor packaging and testing services company. Kaohsiung, Taiwan-based Advanced Semiconductor is also a semiconductor assembly and test services supplier.

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