14. Debt

Following is a summary of short-term borrowings and long-term debt:



	June 30, 2014			December 31, 2013
	(In thousands)
Debt of Amkor Technology, Inc.:
Senior secured credit facilities:
$150 million revolving credit facility, LIBOR plus 1.5%-2.25%, due June 2017	$	—		$	—
Senior notes:
7.375% Senior notes, due May 2018	345,000			345,000
6.625% Senior notes, due June 2021, $75 million related party	400,000			400,000
6.375% Senior notes, due October 2022	525,000			525,000
Senior subordinated notes:
6.0% Convertible senior subordinated notes, due April 2014 (1)	—			56,350
Debt of subsidiaries:
Amkor Technology Korea, Inc.:
$41 million revolving credit facility, foreign currency funding-linked base rate plus 2.00%, due June 2016	—			—
Term loan, LIBOR plus 3.70%, due June 2016 (2)	70,000			70,000
Term loan, foreign currency funding-linked base rate plus 2.00%, due March 2017 (3)	80,000			—
Term loan, LIBOR plus 3.90% or 3.94%, due July 2017 (4)	30,000			90,000
Term loan, foreign currency funding-linked base rate plus 1.75%, due September 2017 (5)	10,000			10,000
Term loan, LIBOR plus 3.70%, due December 2019	70,000			70,000
Term loan, foreign currency funding-linked base rate plus 2.30%, due March 2015 (3)	—			80,000
Other:
Revolving credit facility, TAIFX plus a bank-determined spread, due April 2015 (Taiwan) (6)	—			—
	1,530,000			1,646,350
Add: Unamortized premium	6,111			6,390
Less: Short-term borrowings and current portion of long-term debt	(10,000		)	(61,350		)
Long-term debt (including related party)	$	1,526,111		$	1,591,390

(1)

In April 2009, we issued $250.0 million of our 6.0% Convertible senior subordinated notes due April 2014 (the “2014 Notes”). The 2014 Notes were convertible at any time prior to the maturity date into our common stock at a price of approximately $3.02 per share, subject to adjustment. In June 2013, we completed a tender offer for the 2014 Notes and exchanged $193.7 million of the 2014 Notes for an aggregate 64.0 million shares of our common stock and a cash payment of $11.6 million. In April 2014, holders of the 2014 Notes converted the remaining outstanding principal amount of $56.4 million into 18.6 million shares of our common stock.

(2)

In April 2013, we entered into a term loan agreement with a Korean bank pursuant to which we may borrow up to $150.0 million through April 2016 for general working capital purposes and the repayment of inter-company debt. The loan is collateralized by substantially all the land, factories and equipment located at our facilities in Korea. Principal is payable at maturity. Interest is due quarterly, at a rate of LIBOR plus 3.70% (3.93% as of June 30, 2014). As of June 30, 2014, $80.0 million was available to be borrowed.

(3)

In March 2014, we entered into a term loan agreement with a Korean bank pursuant to which we borrowed $80.0 million. The loan is collateralized by substantially all the land, factories and equipment located at our facilities in Korea. Principal is payable at maturity. Interest is due monthly, at a foreign currency funding-linked base rate plus 2.00% (3.58% as of June 30, 2014). Proceeds were used to prepay our term loan due March 2015.


(4)	In June 2012, we entered into a term loan agreement for five years with a Korean bank collateralized by substantially all the land, factories and equipment located at our facilities in Korea. Principal is payable at maturity. Interest is due quarterly, at LIBOR plus 3.90% (4.13% as of June 30, 2014). In April 2014, we prepaid $60.0 million of the outstanding balance of the term loan.

(5)

In March 2013, we entered into a loan agreement with a Korean bank pursuant to which we may borrow up to $150.0 million through September 2017. The loan is collateralized by substantially all the land, factories and equipment located at our facilities in Korea. Principal is payable in quarterly installments of $5.0 million starting in December 2014, with the remaining balance due at maturity. Interest is due quarterly, at a foreign currency funding-linked base rate plus 1.75% (3.38% as of June 30, 2014). At June 30, 2014, $140.0 million was available to be borrowed for capital expenditures.

(6)

In September 2012, Amkor Technology Taiwan Ltd, a subsidiary in Taiwan, entered into a revolving credit facility. Availability under the revolving credit facility was originally $44.0 million and subsequent availability steps down $5.0 million every six months from the original available balance. Principal is payable at maturity. As of June 30, 2014, $24.0 million was available to be drawn for general corporate purposes and capital expenditures.

The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. The agreements governing our indebtedness contain a number of affirmative and negative covenants which restrict our ability to pay dividends and could restrict our operations. We have never paid a dividend to our stockholders, and we do not have any present plans for doing so. We were in compliance with all of our covenants at June 30, 2014.