Stats ChipPAC receives tenders of $102.54 million 12¾% notes

New York, Oct. 7 - Stats ChipPAC Ltd. said it accepted for purchase $102.54 million principal amount or 62% of its 12¾% senior subordinated notes due 2009 in its tender offer for the securities.

The tender expired at 5 p.m. ET on Oct. 4.

At the previous announcement on Sept. 20, Stats ChipPAC said its ChipPAC International Co. Ltd. subsidiary had received the required consents to proposed indenture changes from the holders of its 12¾% notes - and also said that it was extending the consent solicitation portion of its previously announced tender offer for the notes.

The consent deadline was extended to 5 p.m. ET on Sept. 24, subject to possible further extension, from the original deadline of 11:59 p.m. ET on Sept. 17.

As of Sept. 17, ChipPAC had received valid tenders of notes and deliveries of related consents from holders of $102.54 million of the notes.

As previously announced, Stats ChipPAC Ltd., a Singapore and Fremont, Calif.-based semiconductor assembly and testing company, said on Sept. 7 that ChipPAC International Co. Ltd. had begun a cash tender offer for any and all its $165 million of 12¾% notes and was also soliciting consents to amend the note indenture to eliminate substantially all the restrictive covenants and certain events of default.

ChipPAC said holders tendering by the consent deadline would receive total consideration of $1,063.75 per $1,000 principal amount, including a $10 consent payment. Holders tendering after the consent deadline but before the expiration would receive tender consideration of $1,053.75 per $1,000 principal amount. All tendering holders would also receive accrued interest up to but excluding the payment date.

The company noted that the current redemption price for the notes is $1,063.75 per $1,000 principal amount, plus accrued interest. It said it intends to redeem any notes not tendered.

It said tendered notes could be withdrawn up to the consent deadline but not after.

Stats ChipPAC said it would finance the tender with all or part of the proceeds from a Rule 144A/Regulation S offering of new senior notes.

It said the tender offer would be subject, among other things, to the receipt of sufficient consents to amend the note indenture.

ChipPAC further said that it was also conducting a change-of-control tender offer, required because of the merger of ST Assembly Test Services Ltd. and ChipPAC Inc. Under this offer, holders who tender by 5 p.m. ET on Oct. 4 will receive $1,010.00 per $1,000 principal amount. ChipPAC said that if the tender offer is completed, then holders will receive more than in the change-of-control offer.

Deutsche Bank Securities Inc. is dealer manager and solicitation agent for the tender offer and consent solicitation (800 553-2826 or call collect 212 250-4270). Global Bondholder Services Corp. is the information agent (866 873-6300).

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