Street Calls of the Week
TEMPE, Ariz. - Amkor Technology, Inc. (NASDAQ:AMKR), a $6.09 billion market cap semiconductor services provider, announced Monday it intends to offer $400 million aggregate principal amount of senior notes due 2033 in a private placement to qualified institutional buyers and certain non-U.S. persons. According to InvestingPro data, the company operates with a moderate level of debt and maintains strong liquidity with a current ratio of 1.89.
The semiconductor packaging and test services provider plans to use the net proceeds from the offering, along with cash on hand, to redeem in full its $400 million aggregate principal amount of 6.625% senior notes due 2027 and to pay related fees and expenses.
Pending the use of proceeds, the company intends to invest in cash, cash equivalents, investment grade securities or other short-term marketable securities. The offering of the 2033 Notes will not be conditioned on the redemption of the 2027 Notes.
The 2033 Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
Amkor describes itself as the world’s largest U.S. headquartered outsourced semiconductor assembly and test (OSAT) services provider. The company offers advanced packaging, wafer-level processing, and system-in-package solutions for applications in smartphones, data centers, artificial intelligence, automobiles and wearables.
The announcement, which does not constitute an offer to sell or a solicitation of an offer to buy any notes, was made in a press release statement from the company.
In other recent news, Amkor Technology reported better-than-expected earnings for the second quarter of 2025. The company’s earnings per share (EPS) were $0.22, surpassing the forecast of $0.16, representing a 37.5% surprise. Revenue also exceeded expectations, reaching $1.51 billion compared to the anticipated $1.42 billion, marking a 6.34% surprise. Needham raised its price target for Amkor Technology to $28.00 from $22.00, maintaining a Buy rating, citing a strong earnings report and robust growth in Communications revenue. Meanwhile, DA Davidson reiterated its Buy rating with a $30.00 price target, despite noting mixed third-quarter results where revenue exceeded expectations but margins were softer. KeyBanc maintained a Sector Weight rating, highlighting positive sales trends but cautioning about a significant one-time benefit that contributed to the earnings beat. Additionally, Amkor Technology announced a quarterly cash dividend of $0.08269 per share, payable on September 23, 2025. These developments reflect ongoing investor interest and analyst confidence in Amkor Technology’s performance and future prospects.
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