SOURCE: STATS ChipPAC

STATS ChipPAC

January 05, 2011 13:02 ET

STATS ChipPAC Announces Pricing of US$200 Million 5.375% Senior Notes due 2016

SINGAPORE - 1/6/2011, UNITED STATES--(Marketwire - January 5, 2011) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today announced the pricing of its private placement (the "Private Placement") of US$200 million of 5.375% Senior Notes due 2016 (the "Notes") that was launched on January 5, 2011. The Notes will be issued at par. The Private Placement is expected to close on Wednesday, January 12, 2011, and is subject to the satisfaction of customary closing conditions.

The Notes will constitute senior, unsecured obligations of STATS ChipPAC and will be guaranteed on a senior, unsecured basis by all of STATS ChipPAC's wholly-owned subsidiaries, other than wholly-owned subsidiaries located in the People's Republic of China and, if required regulatory approvals are not obtained, South Korea. The Notes will mature on March 31, 2016. Interest at the rate of 5.375% per annum on the Notes will be payable semi-annually on March 31 and September 30 of each year, beginning March 31, 2011. The Notes will be redeemable at STATS ChipPAC's option on or after March 31, 2014 at certain prices and upon a change of control at 101% of their principal amount, in each case plus accrued and unpaid interest. Prior to March 31, 2014, the Notes are redeemable at STATS ChipPAC's option at a make-whole premium plus accrued and unpaid interest.

STATS ChipPAC intends to use the net proceeds from the private placement of the Notes, together with cash on hand, to prepay in full the remaining US$234.5 million outstanding under its US$360.0 million senior term loan facility obtained in May 2010.

STATS ChipPAC has received approval in-principle from the Singapore Exchange Securities Trading Limited ("SGX-ST") for the listing of the Notes on the SGX-ST. Admission to the Official List of the SGX-ST and quotation of the Notes on the SGX-ST is not to be taken as an indication of the merits of STATS ChipPAC or the Notes.

The Notes were offered in the United States to qualified institutional buyers as defined in Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons outside the United States pursuant to Regulation S of the Securities Act. The Notes were offered to investors in Singapore pursuant to exemptions invoked under Section 274 and Section 275 of the Securities and Futures Act, Chapter 289 of Singapore.

The Notes will not be and have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Forward-Looking Statements

Certain statements in this release, including STATS ChipPAC's expectations and intentions relating to the closing of the Private Placement and use of proceeds thereof, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, general business and economic conditions and the state of the semiconductor industry; prevailing market conditions; demand for end-use applications products such as communications equipment, consumer and multi-applications and personal computers; decisions by customers to discontinue outsourcing of test and packaging services; level of competition; our reliance on a small group of principal customers; our continued success in technological innovations; pricing pressures, including declines in average selling prices; intellectual property rights disputes and litigation; our ability to control operating expenses; our substantial level of indebtedness and access to credit markets; potential impairment charges; availability of financing; changes in our product mix; our capacity utilization; delays in acquiring or installing new equipment; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; returns from research and development investments; changes in customer order patterns; shortages in supply of key components; customer credit risks; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or canceling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; majority ownership by Temasek Holdings (Private) Limited ("Temasek") that may result in conflicting interests with Temasek and our affiliates; unsuccessful acquisitions and investments in other companies and businesses; labor union problems in South Korea; uncertainties of conducting business in China and changes in laws, currency policy and political instability in other countries in Asia; natural calamities and disasters, including outbreaks of epidemics and communicable diseases; the continued trading and listing of our ordinary shares on the SGX-ST; and other risks described from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F dated March 5, 2010. You should not unduly rely on such statements. We do not intend, and do not assume any obligation, to update any forward-looking statements to reflect subsequent events or circumstances.

References to "$" are to the lawful currency of the United States of America.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in 10 different countries. STATS ChipPAC is listed on the SGX-ST. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

Contact Information

  • Investor Relations Contact:
    Tham Kah Locke
    Vice President of Corporate Finance
    Tel: (65) 6824 7788
    Fax: (65) 6720 7826
    email: Email Contact

    Media Contact:
    Lisa Lavin
    Deputy Director of Corporate Communications
    Tel: (208) 867-9859
    email: Email Contact