Amkor Technology Prices $1 B Convertible Senior Notes Due 2031 at 52.5% Premium
Amkor Technology has priced a $1.0 billion 0.00% convertible senior notes offering due July 15, 2031, with an option to sell an additional $150 million. The notes feature an initial conversion price of $106.37 per share, a 52.5% premium to recent stock levels, and net proceeds of about $981.7 million.
1. Offering Overview
Amkor Technology has issued $1.0 billion of 0.00% convertible senior notes due July 15, 2031, with settlement scheduled for May 5, 2026. The offering includes an option to sell up to an additional $150 million of notes for 13 days after issuance.
2. Conversion Terms
The notes convert at an initial rate of 9.4013 shares per $1,000 principal amount, implying a $106.37 conversion price, a 52.5% premium to the April 30, 2026 share price. Conversion rights commence upon specific events before April 15, 2031, and become freely exercisable thereafter.
3. Use of Proceeds and Hedging
Net proceeds are estimated at $981.7 million, rising to $1,129.0 million if the over-allotment option is exercised. Amkor will allocate $49.0 million to capped call transactions and direct the balance toward general corporate purposes, including capital expenditures.
4. Capped Call Transactions
Privately negotiated capped call transactions set a cap price of $139.50 per share (100% premium) to mitigate dilution and cash outlay on conversions. Initial hedging by option counterparties may involve derivatives and stock purchases, which could influence Amkor’s share price post-issuance.