Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

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

	September 30, 2022		December 31, 2021
	(In thousands)
Debt of Amkor Technology, Inc.:
Senior notes:
6.625% Senior notes, due September 2027	$	525,000	$	525,000
Debt of subsidiaries:
Amkor Technology Korea, Inc.:
$30.0 million revolving credit facility, applicable bank rate plus 1.11% (1)	—		—
Term loan, applicable bank rate plus 1.77%, due April 2023	—		47,064
Term loan, fixed rate at 1.85%, due April 2024 (2)	—		—
Term loan, applicable bank rate plus 1.98%, due December 2028	—		50,000
Term loan, fixed rate at 2.12%, due December 2028 (3)	200,000		50,000
Amkor Technology Japan, Inc.:
Short-term term loans, variable rate (4)	9,051		3,789
Term loan, fixed rate at 0.86%, due June 2022	—		4,345
Term loan, fixed rate at 0.60%, due July 2022	—		1,303
Term loan, fixed rate at 1.30%, due July 2023	35,926		79,075
Term loan, fixed rate at 1.35%, due December 2024	88,607		148,592
Term loan, fixed rate at 1.20%, due December 2025	48,950		75,773
Term loan, fixed rate at 1.23%, due December 2026	76,931		113,834
Amkor Assembly & Test (Shanghai) Co., Ltd.:
Term loans, LIBOR plus 1.10%, due March 2024 (5)	47,000		48,000
Term loans, LIBOR plus 0.80%, due June 2025 (6)	40,000		—
Term loans, LIBOR plus 0.75%, due 2025 (7)	60,000		—
Other:
$250.0 million senior secured revolving credit facility, LIBOR plus 1.25% - 1.75%, due July 2023 (Singapore) (8)	—		—
Credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (9)	—		—
$600.0 million senior secured revolving credit facility, applicable bank rate plus 1.75%, due March 2027 (Singapore) (8)	—		—
	1,131,465		1,146,775
Less: Unamortized discount and deferred debt costs, net	(6,400)		(8,779)
Less: Short-term borrowings and current portion of long-term debt	(123,521)		(153,008)
Long-term debt	$	1,001,544	$	984,988

(1)In October 2021, we renewed our revolving credit facility agreement for a one-year term with availability of $30.0 million. Principal is payable at maturity or six months after draw of funds, whichever is sooner, and interest is payable monthly in arrears. As of September 30, 2022, $30.0 million was available to be drawn.

(2)In April 2021, we entered into a ₩80 billion term loan agreement with the option to borrow and re-borrow the funds up to six times per year through April 2024. Principal is payable at maturity, and interest is payable monthly, at a fixed rate of 1.85%. As of September 30, 2022, ₩80.0 billion, or approximately $56 million, was available to be drawn.

(3)In October 2021, we entered into a term loan agreement with availability of $200.0 million. The loan will mature seven years from the date of the first drawdown, which occurred in December 2021 for $50.0 million. During the nine months ended September 30, 2022, we borrowed the remaining $150.0 million under this loan. Principal is payable in semiannual installments after a three-year grace period from the date of the first drawdown. Interest is payable quarterly at a fixed rate of 2.12%.

(4)We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. Interest as of September 30, 2022 is at an annual base rate equal to the Tokyo Interbank Offered Rate plus 0.18% to 0.30% (weighted average of 0.30% as of September 30, 2022). As of September 30, 2022, $4.7 million was available to be drawn.

(5)In March 2021, we entered into a borrowing arrangement which includes a $20.0 million term loan and a $30.0 million term loan. For each term loan, principal is payable in semiannual installments of $0.5 million, with the remaining balance due at maturity. Interest is payable quarterly at an annual base rate equal to the London Interbank Offered Rate, as administered by the International Exchange Benchmark Administration (“LIBOR”), plus 1.10% (weighted average of 4.58% as of September 30, 2022).

(6)In June 2022, we borrowed $40.0 million under two $20.0 million term loans. For each term loan, principal is payable in semiannual installments of $0.5 million, with the remaining balance due at maturity. Interest is payable quarterly at an annual base rate equal to LIBOR plus 0.80% (weighted average of 4.25% as of September 30, 2022).

(7)In August 2022 and September 2022, we borrowed $60.0 million under two $30.0 million term loans with each maturing in three years. For each term loan, principal is payable in semiannual installments of $0.5 million, with the remaining balance due at maturity. Interest is payable quarterly at an annual base rate equal to LIBOR plus 0.75% (weighted average of 4.16% as of September 30, 2022).

(8)In July 2018, our subsidiary, Amkor Technology Singapore Holding Pte. Ltd. (“ATSH”), entered into a $250.0 million senior secured revolving credit facility. In March 2022, this agreement was terminated and replaced with a $600.0 million senior secured revolving credit facility entered into by ATSH (the “2022 Singapore Revolver”). The 2022 Singapore Revolver is guaranteed by Amkor Technology, Inc. (“ATI”), Amkor Technology Taiwan Ltd. (“ATT”) and Amkor Advanced Technology Taiwan, Inc. (“AATT”). The maximum borrowing capacity under the 2022 Singapore Revolver is limited to a base amount equal to the lesser of: (1) $600.0 million; and (2) $250.0 million plus a variable amount equal to 37.5% of our consolidated accounts receivable balance. As of September 30, 2022, $600.0 million was available for future borrowings under the 2022 Singapore Revolver.

(9)In December 2019, our subsidiary, ATT, entered into a $56.0 million borrowing arrangement (the “ATT Loan”). This arrangement included a $20.0 million term loan and a $36.0 million revolving credit facility. In March 2022, in connection with our entry into the 2022 Singapore Revolver, the ATT Loan was amended to reduce the availability of the revolving credit facility from $36.0 million to $15.0 million. As of September 30, 2022, $15.0 million was available for future borrowings under such credit facility.

Certain of our foreign debt is collateralized by the land, buildings, equipment and accounts receivable in the respective locations. As of September 30, 2022 the collateralized debt balance was $561.5 million, of which $382.5 million of assets were pledged as collateral.

The debt of ATI is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, ATI, ATT, AATT and ATSH guarantee certain debt of our subsidiaries.

The agreements governing our indebtedness contain affirmative and negative covenants which restrict our ability to pay dividends and could restrict our operations. These restrictions are determined in part by calculations based upon cumulative net income and do not currently have a material impact on our ability to make dividend payments or stock repurchases.

We were in compliance with all debt covenants at September 30, 2022.