0% Convertible Bonds Worth 1 Trillion Won Issued… Packaging Company Secures Funding for Equipment Investment

Amkor Technology, Inc. (AMKR) structured a private placement of 0% convertible senior notes due 2031 on April 30, securing commitments to raise up to $1.15 billion (approximately KRW 1.5 trillion). On May 5, the company entered into a trust agreement covering the full $1.15 billion principal amount of these unsecured senior convertible notes, which are guaranteed by the guarantor subsidiaries of its existing 2033 senior notes. The notes are convertible into common stock at approximately $106 per share—a premium of about 52% over the prevailing stock price at issuance—and, subject to certain price conditions, may be redeemed early by the issuer on or after May 15, 2029.

Amkor plans to use the net proceeds of approximately $980 million to $1.12 billion (around KRW 1.3 to 1.5 trillion) for capped‐call transactions to offset potential dilution from conversion, capital expenditures and other general corporate purposes. On the same day, one board member exercised stock options and sold a portion of the underlying shares, realizing a profit of about $1.3 million (approximately KRW 1.7 billion).

In its Q1 2026 results announced at the end of April, Amkor reported year-over-year revenue growth and earnings improvement in the high-20% range. On April 23, the board approved a new share repurchase program of up to $300 million (around KRW 400 billion). On May 12, the company declared a quarterly dividend of $0.0835 per share, payable on June 23 to shareholders of record as of June 3. (Source: ir.amkor.com)

Headquartered in Arizona, Amkor is a leading outsourced semiconductor assembly and test (OSAT) services provider, holding a top share in the global OSAT market and offering packaging services for applications in communications, automotive and high-performance computing. The company is currently undertaking major facility investments in the US and Asia to expand advanced packaging and production capacity, and expects to deploy the funds raised from this convertible note issuance toward these expansion projects. (Source: amkor.com)