Stats ChipPAC cancels tender offer, consent bid for 6¾%, 7½% notes

By Susanna Moon

Chicago, Aug. 8 - Stats ChipPAC Ltd. said it ended the tender offer and consent solicitation for its $150 million 7½% senior notes due 2010 and $215 million 6¾% senior notes due 2011 to 5 p.m. ET on Aug. 8 from July 22.

The issuer said the offer has been terminated because the financing condition was not met.

The offer began on June 19. The company was soliciting consents to amend the note indentures to eliminate or modify substantially all of the restrictive covenants, some reporting obligations, some events of default and other provisions.

For each $1,000 principal amount, the company said it would pay $1,086.45 for the 7½% notes and $1,046.42 for the 6¾% notes.

Pricing was determined on July 3. For the 6¾% notes, the amount is based on the cash flows to the $1,033.75 per $1,000 redemption price on the first call date of Nov. 15, 2008, discounted using 50 basis points over the 4¾% U.S. Treasury due Nov. 15, 2008.

For the 7½% notes, the calculation used the par payment at maturity of July 19, 2010, discounted using 50 bps over the 3 7/8% U.S. Treasury due July 15, 2010.

Both payouts included a $30.00 consent fee.

As of July 2, the company had received tenders and consents for 98.09% of the 7½% notes and for 98.51% of the 6¾% notes.

The tender offer was part of a previously announced capital reduction and will be funded with an offer of new notes and a new term loan. It was subject to Stats ChipPAC obtaining adequate debt financing to fund the offer on acceptable terms and the receipt of consents from holders of a majority of the notes.

The two tender offers are independent of each other.

Credit Suisse (+ 44 20 7883 6748, +852 2101 6000 or liability.management@credit-suisse.com) and Deutsche Bank (+ 44 20 7545 8011, +65 6423 5342 or liability.management@db.com) are the dealer managers, and Lucid Issuer Services Ltd. (Yves Theis or Sunjeeve Patel at +44 20 7704 0880, statschippac@lucid-is.com) is the tender and information agent.

Stats ChipPAC is a Singapore-based provider of semiconductor packaging design, assembly, test and distribution equipment and services.

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