Business Context and Reporting Period
Company: Advanced Semiconductor Engineering, Inc. (ASE Technology Holding Co., Ltd.)
Filing Date: June 29, 2009
Reporting Period: Current event disclosure (Form 6-K)
Business Overview: ASE is the world's largest outsourced semiconductor assembly and testing company with operations in Taiwan, South Korea, Malaysia, Japan, Singapore, China, the US, and Europe.
Key Financial Metrics and Debt
Debt Financing: Entered into a five-year syndicated loan agreement for NT$12 billion.
Lenders: 17 banks led by Citibank, Taipei Fubon Commercial Bank, Bank of Taiwan, Calyon Corporate and Investment Bank, and First Commercial Bank.
Subscription Status: The loan was oversubscribed by more than 70%.
Use of Proceeds: Repayment of loans due before June 2010 and working capital.
Revenue/Profit/Cash Flow: The filing text does not provide specific values for revenue, profit, cash flow, or margins for this period.
Material Changes and Unusual Items
Debt Restructuring: The primary material event is the securing of new long-term financing to refinance short-term obligations due within the next year.
Market Reception: Despite a difficult macroeconomic environment, the strong oversubscription indicates robust support from the local and foreign banking community.
Management Commentary and Outlook
Management Statement: CFO Joseph Tung highlighted the company's 25-year growth trajectory and global strategic footprint. He noted that the oversubscription serves as a strong indicator of banking community support, which will help the ASE Group remain competitive.
Banking Partner Commentary: Citibank's Chief Country Officer, Morris Li, emphasized the bank's commitment to assisting Taiwanese corporate clients with financing for investment and expansion.
Risks and Contingencies: The filing mentions a "difficult macro environment" but does not detail specific operational risks or contingencies beyond the need for liquidity management.
Investor Verification Checklist
- Verify the exact interest rate and covenants associated with the NT$12 billion syndicated loan.
- Confirm the specific volume of debt maturing before June 2010 that is being refinanced.
- Review the company's most recent quarterly or annual report for current liquidity ratios and working capital requirements.
- Assess the impact of the "difficult macro environment" on the semiconductor assembly and testing sector.