Amkor Technology Raises $500mln Through Notes Offering

Amkor Technology has priced a $500 million notes offering, expanding its debt financing to support its outsourced semiconductor packaging and test services. The company provides turnkey services, including packaging, test, and drop shipment services, to IDMs, fabless semiconductor companies, OEMs, and contract foundries. This move will allow Amkor to focus its investments on advanced packaging solutions and artificial intelligence technologies.

Amkor Technology (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, has priced a $500 million aggregate principal amount of its 5.875% senior notes due 2033 in a private placement [1]. The 2033 notes will be senior unsecured obligations of the company, with interest payable semi-annually at a rate of 5.875% per annum on April 1 and October 1 of each year, commencing on April 1, 2026. Amkor intends to use the proceeds to redeem its $400 million aggregate principal amount of 6.625% senior notes due 2027, pay related fees and expenses, and for general corporate purposes [1].

Pending the use of the proceeds of this offering, Amkor plans to invest the funds in cash, cash equivalents, investment-grade securities, or other short-term marketable securities. The consummation of the offering of the 2033 notes will not be conditioned on the redemption of the 2027 notes [1].

This debt financing move is part of Amkor's strategy to focus on advanced packaging solutions and artificial intelligence technologies. The company has also announced plans to build a new semiconductor advanced packaging and test facility in Arizona, with construction set to begin within days and production expected to start in early 2028 [2]. This new facility is part of Amkor's commitment to strengthening the U.S. semiconductor supply chain.

Amkor reported strong financial results for the fourth quarter and full year 2024, with net sales of $6.32 billion and net income of $354 million. The company's earnings per diluted share were $1.43, and EBITDA was $1.09 billion [3]. Amkor's guidance for the first quarter 2025 projects net sales of $1.225 billion to $1.325 billion and net income of $3 million to $43 million, or $0.01 to $0.17 per diluted share [3].

References:
[1] https://seekingalpha.com/news/4493203-amkor-technology-prices-500-million-of-5875-senior-notes-due-2033
[2] https://www.businesswire.com/news/home/20250828146023/en/Amkor-Announces-New-Site-for-U.S.-Semiconductor-Advanced-Packaging-and-Test-Facility
[3] https://www.businesswire.com/news/home/20250210565899/en/Amkor-Technology-Reports-Financial-Results-for-the-Fourth-Quarter-and-Full-Year-2024