Amkor completes $500 million notes offering, to redeem 2027 notes

TEMPE, Ariz. - Amkor Technology, Inc. (Nasdaq:AMKR), a $7.36 billion market cap semiconductor packaging and testing services provider with a "GOOD" financial health rating according to InvestingPro, has completed its offering of $500 million aggregate principal amount of 5.875% Senior Notes due 2033, the company announced Monday.

The company also issued a notice for the redemption of all $400 million of its outstanding 6.625% Senior Notes due 2027. The redemption will be effective on October 9, 2025, with a redemption price of 100% of the principal amount plus accrued and unpaid interest. This debt management aligns with the company’s moderate debt profile, as InvestingPro data shows a healthy current ratio of 1.89, indicating strong short-term liquidity.

Amkor plans to use the net proceeds from the 2033 Notes offering to fund the redemption of the 2027 Notes, pay related fees and expenses, and for general corporate purposes. Until the proceeds are utilized, the company intends to invest them in cash, cash equivalents, investment grade securities or other short-term marketable securities.

The 2033 Notes were offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to certain non-U.S. persons outside the United States under Regulation S. The notes have not been registered under the Securities Act or any state securities laws.

U.S. Bank Trust Company, National Association, the trustee under the indenture governing the 2027 Notes, has sent a redemption notice to all currently registered holders of these notes.

Amkor Technology is a provider of outsourced semiconductor packaging and test services with operations globally.

The information in this article is based on a company press release statement.

In other recent news, Amkor Technology announced its intention to offer $400 million in senior notes due 2033. The proceeds from this offering will be used to redeem its existing $400 million senior notes due 2027 and cover related fees. Additionally, the company declared a quarterly cash dividend of $0.08269 per share, payable on September 23, 2025, to shareholders recorded by September 3, 2025. Analyst firm DA Davidson reiterated its Buy rating for Amkor Technology, maintaining a $30 price target despite mixed third-quarter results, where revenue exceeded expectations but margins fell short. KeyBanc maintained a Sector Weight rating, noting positive sales trends in Amkor’s second-quarter earnings report, though a significant one-time benefit impacted the results. Needham increased its price target for Amkor to $28, highlighting a strong quarterly performance with anticipated growth in communications revenue. The firm’s confidence is bolstered by Amkor’s regained socket placement in high-end smartphones.

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