Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

Debt

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

	March 31, 2023		December 31, 2022
	(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.:
Term loan, fixed rate at 1.85%, due April 2024 (1)	—		—
Term loan, fixed rate at 2.12%, due December 2028	200,000		200,000
Amkor Technology Japan, Inc.:
Short-term term loans, variable rate (2)	9,235		4,042
Term loan, fixed rate at 1.30%, due July 2023	19,569		29,744
Term loan, fixed rate at 1.35%, due December 2024	75,079		86,943
Term loan, fixed rate at 1.20%, due December 2025	45,123		49,878
Term loan, fixed rate at 1.23%, due December 2026	73,950		79,927
Term loan, fixed rate at 1.59%, due December 2027	112,261		119,738
Amkor Assembly & Test (Shanghai) Co., Ltd.:
Term loans, LIBOR plus 1.10%, weighted average of 6.25% as of March 31, 2023, due March 2024	46,000		46,000
Term loans, LIBOR plus 0.80%, weighted average of 5.74% as of March 31, 2023, due June 2025	39,000		39,000
Term loans, LIBOR plus 0.75%, weighted average of 5.81% as of March 31, 2023, due 2025	59,000		59,500
Other:
Credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (3)	—		—
$600.0 million senior secured revolving credit facility, applicable bank rate plus 1.75%, due March 2027 (Singapore) (4)	—		—
	1,204,217		1,239,772
Less: Unamortized discount and deferred debt costs, net	(6,751)		(7,438)
Less: Short-term borrowings and current portion of long-term debt	(137,469)		(143,813)
Long-term debt	$	1,059,997	$	1,088,521

(1)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 March 31, 2023, ₩80.0 billion, or approximately $61 million, was available to be drawn.

(2)We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. Interest as of March 31, 2023 is at an annual base rate equal to the Tokyo Interbank Offered Rate plus 0.18% to 0.27% (weighted average of 0.26% as of March 31, 2023). As of March 31, 2023, $5.8 million was available to be drawn.

(3)In March 2022, Amkor Technology Taiwan Ltd. (“ATT”) amended an existing revolving credit facility to reduce availability from $36.0 million to $15.0 million. As of March 31, 2023, $15.0 million was available for future borrowings under such credit facility.

(4)In March 2022, Amkor Technology Singapore Holdings Pte. Ltd. (“ATSH”) entered into a $600.0 million senior revolving credit facility (the “2022 Singapore Revolver”), which is guaranteed by Amkor Technology, Inc., ATT and Amkor Advanced Technology, 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 March 31, 2023, $600.0 million was available for future borrowings under the 2022 Singapore Revolver.

Certain of our foreign debt is collateralized by the land, buildings, equipment and accounts receivable in the respective locations. As of March 31, 2023, the collateralized debt balance was $650.4 million, of which $365.2 million of assets were pledged as collateral.

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., 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 March 31, 2023.