Debt

12 Months Ended

Dec. 31, 2019

Short-term borrowings and long-term debt consist of the following:



	December 31,
	2019			2018
	(In thousands)
Debt of Amkor Technology, Inc.:
Senior notes:
6.375% Senior notes, due October 2022 (1)	$	—		$	524,971
6.625% Senior notes, due September 2027 (1)	525,000			—
Debt of subsidiaries:
Amkor Technology Korea, Inc.:
$30 million revolving credit facility, LIBOR plus the applicable bank rate, due October 2020 (2)	—			—
Term loan, fixed rate at 3.70%, due May 2020 (3)(5)	—			120,000
Term loan, fund floating rate plus 1.60%, due June 2020 (4) (5) (6)	24,000			125,000
Term loan, applicable bank rate plus 2.03%, due July 2022 (5)	40,000			—
Term loan, applicable bank rate plus 2.03%, due September 2022 (5)	60,000			—
Term loan, LIBOR plus 2.56%, due December 2023	200,000			200,000
Term loan, applicable bank rate plus 1.98%, due December 2028 (6)	66,000			24,000
Amkor Technology Japan, Inc.:
Short-term term loans, variable rate (7)	7,071			8,232
Term loan, fixed rate at 0.86%, due June 2022	23,018			31,908
Term loan, fixed rate at 0.60%, due July 2022	5,064			6,838
Term loan, fixed rate at 1.30%, due July 2023	179,541			225,180
Term loan, fixed rate at 1.35%, due December 2024 (8)	262,407			—
Amkor Assembly & Test (Shanghai) Co., Ltd.:
Term loan, LIBOR plus 1.80%, due December 2019 (9)	—			48,000
Term loan, LIBOR plus 1.60%, due March 2022 (9)	29,000			—
Term loan, LIBOR Plus 1.40%, due March 2022 (9)	19,250			—
Other:
$250 million senior secured revolving credit facility, LIBOR plus 1.25%-1.75%, due July 2023 (Singapore) (8) (10)	—			—
Revolving credit facility, TAIFX plus the applicable bank rate, due November 2020 (Taiwan) (11)	—			20,000
Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (11)	20,000			—
	1,460,351			1,334,129
Less: Unamortized premium, discount and deferred debt costs, net	(10,117		)	(1,818		)
Less: Short-term borrowings and current portion of long-term debt	(144,479		)	(114,579		)
Long-term debt	$	1,305,755		$	1,217,732

(1)

In April 2019, we redeemed the outstanding $525.0 million aggregate principal amount of our 6.375% Senior Notes due 2022 (“2022 Notes”). In accordance with the terms of the indenture governing the 2022 Notes, the redemption price was 101.594% of the principal amount of the 2022 Notes plus accrued and unpaid interest. We recorded an $8.4 million loss on extinguishment related to the call premium paid and other debt related costs associated with the 2022 Notes. The redemption of the 2022 Notes was funded with net proceeds from our issuance of $525.0 million of 6.625% Senior Notes due September 2027 (“2027 Notes”) in March 2019, together with cash on hand. The 2027 Notes were issued at a discount of 99.5% or $2.6 million and are senior unsecured obligations. Interest is payable semiannually on March 15 and September 15 of each year, commencing September 15, 2019. We incurred $3.6 million of debt issuance costs associated with the 2027 Notes.


(2)	In October 2019, we renewed our revolving credit facility agreement with availability of $30.0 million. Interest is payable monthly in arrears. Principal will be payable at the maturity date of October 2020. As of December 31, 2019, $30.0 million was available to be drawn.


(3)	In May 2017, we entered into a $120.0 million term loan agreement due May 2020. During 2019, we repaid all $120.0 million of the outstanding balance of this term loan.


(4)	In May 2015, we entered into a term loan agreement pursuant to which we may borrow up to $150.0 million for capital expenditures. Principal is payable at maturity in June 2020. Interest is payable quarterly in arrears. During 2019, we repaid $101.0 million of the outstanding balance of this term loan. In February 2020, we repaid the remaining $24.0 million of the outstanding balance.


(5)	In July 2019, we entered into an agreement pursuant to which we may borrow up to $180.0 million for purchases of materials through two term loans. Principal is payable at maturity and interest is payable quarterly in arrears.

We borrowed the full balance of $40.0 million under the first term loan in July 2019 to repay $40.0 million of the outstanding balance for the term loan due May 2020. This term loan bears interest at a fixed rate of 3.80% and has a maturity date of July 2022.

We borrowed $60.0 million under the second term loan in September 2019 to repay part of the term loan due June 2020. The $60.0 million borrowing under the second term loan bears interest at a fixed rate of 3.59% and has a maturity date of September 2022. As of December 31, 2019, $80.0 million was available to be drawn under the second term loan.

(6)

In December 2018, we entered into a term loan agreement pursuant to which we may borrow up to $90.0 million for capital expenditures. During 2019, we borrowed $42.0 million of this term loan and used the proceeds to repay part of the term loan due June 2020. Principal of this term loan is payable in semiannual installments beginning June 2022 and ending at maturity in December 2028. Interest is fixed at 4.5% and is payable quarterly in arrears. As of December 31, 2019, $24.0 million was available to be drawn. In February 2020, we used the remaining $24.0 million to repay, in full, the term loan due June 2020.


(7)	We entered into various short-term loans which mature semiannually. Principal is payable in monthly installments. As of December 31, 2019, $6.0 million was available to be drawn.

(8)

In December 2019, we entered into a ¥28.5 billion (US$260.6 million) term loan agreement due December 2024, guaranteed by Amkor Technology Inc. and our subsidiary, Amkor Technology Singapore Holding Pte, Ltd. Principal is due in 20 equal, quarterly installments plus accrued interest, through maturity. We immediately drew down $260.6 million. In December 2019, we used the proceeds to pay down $80.0 million of the senior secured revolving credit facility due July 2023. In January 2020, we also used these proceeds to repay $120.0 million of our term loan due December 2023. The remaining proceeds will be used for other general corporate purposes.

(9)

In December 2016, we entered into a $50.0 million term loan agreement. Principal is payable in semiannual installments of $0.5 million, with the remaining balance due at maturity in December 2019. Interest is payable quarterly. During the twelve months ended December 31, 2019, we repaid the entire $48.0 million outstanding balance of this term loan using the proceeds from our term loans due March 2022.

In March 2019, we entered into a $30.0 million term loan agreement due March 2022. We borrowed $30.0 million under this term loan and used the proceeds to repay part of the term loan due December 2019. Principal is payable in semiannual installments of $0.5 million, with the remaining balance due at maturity. Interest is payable quarterly.

In April 2019, we entered into a term loan agreement with availability of $20.0 million due March 2022. We borrowed $20.0 million under this term loan and used the proceeds to repay part of the term loan due December 2019. Principal is payable in semiannual installments of $0.5 million, with the remaining balance due at maturity. Interest is payable quarterly.

(10)

In July 2018, the senior secured revolving credit facility of Amkor Technology, Inc. was terminated and replaced by a new facility due July 2023 entered into by our subsidiary, Amkor Technology Singapore Holding Pte, Ltd., and guaranteed by Amkor Technology, Inc. We recorded a $0.4 million charge for the write-off of the associated unamortized debt issuance costs relating to the terminated credit facility. The availability for the new revolving credit facility is based on the amount of eligible accounts receivable. As of December 31, 2019, $250.0 million was available to be drawn.

(11)

In November 2015, we entered into a $39.0 million revolving credit facility due November 2020. In December 2019, we entered into a $56.0 million revolving credit facility due December 2024 to replace the $39.0 million revolving credit facility. We immediately drew $20.0 million to repay the credit facility due November 2020. Principal is payable at maturity. As of December 31, 2019, $36.0 million was available to be drawn under the credit facility due December 2024.

Certain of our foreign debt is collateralized by the land, buildings, equipment and accounts receivable in the respective locations. The carrying value of all collateral exceeds the carrying amount of the collateralized debt.

Interest Rates

Interest is payable semiannually on our senior notes and quarterly or monthly on our other fixed- and variable-rate debt. Refer to the table above for the interest rates on our fixed-rate debt and to the table below for the interest rates on our variable-rate debt.



	December 31,
	2019		2018
Amkor Technology Korea, Inc.:
Term Loan, fund floating rate plus 1.60%, due June 2020	3.90	%	4.49	%
Term loan, LIBOR plus 2.56%, due December 2023	4.49	%	5.38	%
Amkor Technology Japan, Inc:
Short-term term loans, variable rate	0.22	%	0.24	%
Amkor Assembly & Test (Shanghai) Co., Ltd.:
Term loan, LIBOR plus 1.80%, due December 2019	—		4.22	%
Term loan, LIBOR plus 1.60%, due March 2022	3.53	%	—
Term loan, LIBOR Plus 1.40%, due March 2022	3.30	%	—
Amkor Technology Taiwan Ltd.:
Revolving credit facility, TAIFX plus the applicable bank rate, due November 2020	—	%	4.26
Revolving credit facility, TAIFX plus the applicable bank rate, due December 2024	3.35	%	—

Compliance with Debt Covenants

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. From time to time, Amkor Technology, Inc. and Amkor Technology Singapore Holding Pte, Ltd. guarantee certain debt of our subsidiaries. The agreements governing our indebtedness contain affirmative, negative and financial 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 debt covenants at December 31, 2019 and 2018.

Maturities



	Total Debt
	(In thousands)
Payments due for the year ending December 31,
2020	$	144,479
2021	113,408
2022	260,022
2023	297,818
2024	81,910
Thereafter	562,714
Total debt	$	1,460,351