e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 28, 2007
AMKOR
TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
|
|
|
|
|
Delaware |
|
000-29472 |
|
23-1722724 |
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.) |
1900 South Price Road
Chandler, Arizona 85248
(Address of Principal
Executive Offices)
(480) 821-5000
(Registrants telephone number, including area code)
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligations of the registrant under any of the following provisions:
o |
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
o |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
o |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
o |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 Entry Into a Material Definitive Agreement
On March 30, 2007, Amkor Technology Korea, Inc., a Korean corporation (the Borrower) and a
wholly-owned subsidiary of Amkor Technology, Inc. (the Company), entered into that certain Credit
Facility Agreement (the Korean Credit Agreement) and certain agreements ancillary thereto (such
agreements together with the Korean Credit Agreement, the Korean Loan Documents) with Woori Bank,
a Korean banking entity (Woori Bank), pursuant to which Borrower will obtain a $300 million term
loan from Woori Bank (the Transaction), the proceeds of which will be used to refinance and
replace obligations of the Company under the Second Lien Credit Agreement, dated as of October 27,
2004, as amended (the Second Lien Credit Agreement), with Citicorp North America, Inc. as
Administrative Agent (Citibank). The Korean Credit Agreement is subject to General Terms and
Conditions for Bank Credit Transactions, and an Additional Agreement between the Borrower and Woori
Bank. The Borrower has also entered into a Kun-mortgage Agreement in favor of Woori Bank, pursuant
to which Borrower will mortgage substantially all its land, factories and equipment located in
Korea as security for its obligations under the Korean Loan Documents. The Korean Credit Agreement
will not be secured by any collateral located outside of Korea.
In connection with the Korean Credit Agreement, the Company has executed a Kun-Guaranty (the
Guaranty) in favor of Woori pursuant to which the Company will guaranty on an unsecured basis,
the Borrowers performance and obligations under the Korean Loan Documents.
The loan proceeds under the Korean Credit Agreement are to be paid into an escrow for
distribution directly to Citibank following notice of prepayment by the Company to Citibank of all
of the Companys obligations under the Second Lien Credit Agreement. The proceeds under the Korean
Credit Agreement, together with prepayment and other expenses and accrued and unpaid interest to be
paid by the Company, will be sufficient to repay all obligations of the Company under the Second
Lien Credit Agreement. Following such repayment, all of the obligations of the Company and the
guarantors under the Second Lien Credit Agreement will be discharged and all collateral securing
such obligations is to be released.
On March 28, 2007, the Company executed a Second Amendment (the Second Amendment) to the
Loan and Security Agreement (the First Lien Loan and Security Agreement) with the lenders party
to the First Lien Loan and Security Agreement and Bank of America, N.A. as administrative agent for
the lenders. The Second Amendment amends the definition of Permitted Bank Debt in the First Lien
Loan and Security Agreement to allow the Transaction to qualify as Permitted Bank Debt under the
terms thereof.
The press release announcing the Transaction is included herein as an exhibit. The Second Lien
Credit Agreement was previously filed with the Securities and Exchange Commission (the SEC) on
November 11, 2004, and the First Lien Loan and Security Agreement was previously filed with the SEC
on December 2, 2005. The Korean Loan Documents will be filed
shortly after receipt of expected approval of the Transaction by the
Bank of Korea.
Item 9.01 Financial Statements and Exhibits
|
|
|
Exhibit |
|
Description |
99.1
|
|
Text of Press Release Dated April 2, 2007 |
|
|
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMKOR TECHNOLOGY, INC.
|
|
|
|
|
|
AMKOR TECHNOLOGY, INC.
|
|
Date: April 02, 2007 |
By: |
/s/ KENNETH T. JOYCE
|
|
|
|
Name: |
Kenneth T. Joyce |
|
|
|
Title: |
Executive Vice President and Chief Financial Officer |
|
exv99w1
News Release
Amkor Refinances $300 Million Term Loan
CHANDLER, Ariz. April 2, 2007 Amkor Technology, Inc. (Nasdaq: AMKR) today announced that
its wholly owned Korean subsidiary, Amkor Technology Korea, Inc., has entered into a $300 million,
7-year secured credit facility with Woori Bank, a member of Woori Financial Group (NYSE:WF), one of
the largest financial institutions in Korea. The loan will be guaranteed on an unsecured basis by
Amkor Technology, Inc. The loan bears interest at Wooris base rate plus 50 bps (currently 6.6%,
or approximately LIBOR + 125 bps) and amortizes in 28 equal quarterly payments through April 2014.
The Woori loan remains subject to the approval of the Bank of Korea. Proceeds of the Woori loan,
together with prepayment fees and accrued and unpaid interest, will be used to repay Amkors
existing $300 million second lien term loan, due October 2010, which bears interest at a rate of
LIBOR + 450 basis points (currently 9.9%). This transaction will fully discharge all of Amkors
obligations under the second lien term loan and fully discharge subsidiary guarantees and
collateral securitizing the second lien term loan.
In commencing this relationship with Woori Financial Group, we are expanding our banking
relationships to include a strong financial partner in Asia, said Joanne Solomon, Amkors Senior
Vice President, Finance. We are pleased with the structure and terms of this facility, which
should allow us to substantially reduce our annual interest expense.
In connection with the early repayment of the second lien term loan, Amkor expects to record a
charge of approximately $16 million in the second quarter of 2007, including $9 million in
prepayment fees and $7 million to write off unamortized deferred debt issuance costs. We expect to
incur approximately $2 million in debt issuance costs in connection with the Woori loan, which
amount will be funded from existing cash.
About Amkor
Amkor Technology, Inc. (Nasdaq: AMKR) is a leading provider of advanced semiconductor assembly and
test services. The company offers semiconductor companies and electronics OEMs a complete set of
microelectronic design and manufacturing services. More information on Amkor is available from the
companys SEC filings and on Amkors web site: www.amkor.com.
Forward Looking Statements
This press release contains forward looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including but not limited to statements regarding potential interest
savings and the expected charge for early repayment of the second lien term loan. These
forward-looking statements are subject to a number of risks and uncertainties that could affect
future results and cause actual results and events to differ materially from historical and
expected results.
Further information on risk factors that could affect the outcome of the events set forth in these
statements and that could affect the companys operating results and financial condition is
detailed in Amkors filings with the Securities and Exchange Commission, including the Report on
Form 10-K for the year ended December 31, 2006.
Contact:
Jeffrey Luth
VP Corporate Communications
480-821-5000 ext. 5130
jluth@amkor.com