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Stats ChipPac US$425 million senior notes priced at 8.5%

STATS ChipPAC Ltd on Wednesday morning announced the pricing of its US$425 million in aggregate principal amount of 8.5 per cent senior secured notes due 2020.

This follows the proposed offering of new senior secured notes on Nov 9.

The semiconductor test and advanced packaging service provider said the new notes are expected to be issued on Nov 24 this year and their issue is subject to the satisfaction of customary closing conditions.

The company said it intends to use the net proceeds from the issuance of the new notes to repay its borrowings under its US$890 million bridge loan facility, entered into on Aug 6.

The new notes constitute senior, secured obligations of the company and will be guaranteed by all of the company's subsidiaries, except for those incorporated in China and Thailand.

The company said the new notes will mature on Nov 24, 2020.

Interest at the rate of 8.5 per cent per annum will be payable semi-annually on May 24 and Nov 24 of each year, starting from May 24, 2016.

The new notes will be redeemable at the company's option on or after Nov 24, 2018, at certain prices and upon a change of control at 101 per cent of their principal amount, in each case plus accrued and unpaid interest.

Before Nov 24, 2018, the new notes are redeemable at the company's option at a make-whole premium plus accrued and unpaid interest.

STATS ChipPAC said it has received approval in-principle from the Singapore Exchange Securities Trading Limited for the listing and quotation of the new notes.

The new notes were offered within the United States only to qualified institutional buyers.