Business Context and Reporting Period
Company: Amkor Technology, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 9, 2025
Event: Entry into a new material definitive agreement to replace the existing senior revolving credit facility.
Key Financial Metrics and Debt Structure
This filing details the terms of a new revolving credit facility rather than reporting operational financial results (revenue, profit, or cash flow) for a specific period.
- Facility Size: $1 billion aggregate revolving commitments.
- Accordion Option: Uncommitted optional increase of up to $200 million (revolving or term loans).
- Maturity Date: May 9, 2030.
- Currency Limits: Non-U.S. Dollar borrowings limited to the lesser of total commitments or $25 million.
- Interest Rates: Based on Term SOFR, Base Rate, or Tokyo Interbank Offer Rate plus a margin tied to the consolidated leverage ratio.
- Collateral: Secured by a lien on equity interests of certain subsidiaries (subject to fallaway provisions).
Material Changes Versus Prior Period
The Company replaced its senior revolving credit facility dated March 28, 2022, with the new facility effective May 9, 2025. The new agreement extends the maturity date by approximately five years and introduces specific financial covenants and incurrence-based negative covenants not detailed in the summary of the prior agreement.
Guidance, Covenants, and Risks
Financial Covenants:
- Interest Coverage Ratio: Must maintain a minimum of 3.00:1.00 (Consolidated EBITDA to Consolidated Interest Expense) on a trailing four-quarter basis.
- Leverage Ratio: Must maintain a maximum of 3.00:1.00 (Consolidated Total Indebtedness to Consolidated EBITDA) on a trailing four-quarter basis.
- If the Company achieves an Investment Grade Rating from at least two agencies, liens securing the obligations may be released.
- Liens must be reinstated upon a subsequent downgrade.
- Dividends: Regular quarterly dividends are permitted provided no event of default occurs.
- Other Restricted Payments: Permitted if pro forma Consolidated Leverage Ratio is 2.50:1.00 or better.
- Additional Debt: Secured debt is limited to $250 million during an Unsecured Covenants Period; otherwise unlimited if pro forma leverage is 2.50:1.00 or better. Unsecured debt is unlimited if financial covenants are met, with an additional basket of the greater of $250 million or 5% of Consolidated Net Tangible Assets.
- Events of default include failure to pay principal/interest, breach of covenants, change in control, and bankruptcy.
- Non-compliance with leverage or coverage ratios could restrict operations or trigger default.
The filing states proceeds will be used for general corporate purposes. No specific outlook or guidance on future revenue or earnings is provided in this document.
Investor Verification Checklist
- Verify the Company's current Consolidated EBITDA and Total Indebtedness to assess compliance with the 3.00:1.00 leverage and coverage covenants.
- Confirm the Company's current credit ratings to determine if the "Unsecured Covenants Period" is active or if liens are currently in place.
- Review the full text of the Credit Agreement (Exhibit 10.1) for specific definitions of "Consolidated EBITDA" and "Consolidated Total Indebtedness" to understand potential adjustments.
- Monitor the Company's ability to maintain the 2.50:1.00 pro forma leverage ratio required for restricted payments and certain debt incurrences.