April 3, 2007 – Amkor Technology Inc. says its Korean subsidiary Amkor Technology Korea Inc. has entered into a seven-year, $300 million secured credit facility with Woori Bank, one of the nation’s largest financial institutions.
Proceeds of the loan, which is subject to approval by the Bank of Korea, will be used to repay an existing $300M loan due October 2010. The deal essentially obtains better interest rates (currently 6.6%) than the existing loan (currently 9.9%).
Amkor expects to record a charge of ~$16 million in 2Q07 for prepayment fees and writeoff of unamortized debt issuance costs. Another $2 million in debt issuance costs in connection with the new Woori loan will be funded from existing cash.