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Amkor Technology , Inc. (NASDAQ:AMKR), a prominent semiconductor packaging and testing services provider with a market capitalization of $5.3 billion, announced Monday that it has amended its senior revolving credit facility to add a new $500 million tranche of term loans. According to InvestingPro data, the company currently operates with a moderate debt level and appears undervalued based on Fair Value analysis. According to a statement based on a SEC filing, the First Amendment to Credit Agreement was executed on June 27, 2025, with Bank of America, N.A. acting as administrative agent.
The new Term A-1 Loans are secured and guaranteed on an equal basis with existing revolving loans under the company’s credit agreement. Amkor stated that proceeds from the Term A-1 Loans will be used to refinance certain existing debt and for general corporate purposes.
The Term A-1 Loans have an aggregate principal amount of $500 million and will mature on May 9, 2030. Amortization is set at 2.5% of the original principal per year for 2026 and 2027, increasing to 5% per year thereafter, with payments due quarterly. The company may elect interest rates for these loans based on either Term SOFR or a base rate plus a margin determined by Amkor’s consolidated leverage ratio.
In a separate event, Amkor notified U.S. Bank Trust Company, National Association, as trustee, that it will redeem $125 million in aggregate principal of its 6.625% Senior Notes due 2027. The company maintains strong liquidity with a current ratio of 2.06, indicating its ability to meet short-term obligations. For deeper insights into Amkor’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities. The redemption is scheduled for July 30, 2025, at the redemption price specified in the governing indenture, plus accrued and unpaid interest. Following the redemption, $400 million of the notes will remain outstanding.
The company noted that the SEC filing does not serve as the official notice of redemption for the notes.
All information is based on a press release statement and the company’s Form 8-K filing with the Securities and Exchange Commission.
In other recent news, Amkor Technology reported its first-quarter 2025 earnings, meeting analysts’ expectations with an earnings per share (EPS) of $0.09 and surpassing revenue forecasts by reaching $1.32 billion, compared to the anticipated $1.28 billion. Despite a 3% year-over-year decline in revenue, the company provided guidance for the second quarter, projecting revenue between $1.375 billion and $1.475 billion. Meanwhile, analysts at DA Davidson and Needham have both adjusted their price targets for Amkor Technology, with DA Davidson reducing its target to $30 and Needham lowering it to $22, while both firms maintained a Buy rating on the stock. These adjustments reflect concerns over the impact of tariffs and export controls on the company’s future performance. Amkor has withdrawn its full-year revenue forecast by segment, citing uncertainties in the second half of the year due to these tariffs. Despite these challenges, Amkor continues to advance its technology with new products and facility expansions. The company remains optimistic about its long-term market prospects, driven by advancements in packaging technologies and potential facility expansions. Amkor’s management has highlighted its strong liquidity position, with $2.2 billion in total liquidity, which supports its strategic initiatives.
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