STATS ChipPAC faces funding test after Temasek split

Singapore

STATS ChipPAC Ltd, South-east Asia's biggest semiconductor assembler, is seeking to refinance US$400 million of debt in the first test of its credit strength without the implicit AAA backing of the government of Singapore.

The chip packaging and testing company plans to sell dollar-denominated bonds due in five years to help repay part of an US$890 million bridge loan, chief financial officer Woo Kwek Kiong said. The company is currently seeking a US$500 million syndicated loan to pare the bridge loan from DBS Group Holdings Ltd.