v3.25.2
Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Debt
Short-term borrowings and long-term debt consist of the following:
June 30, 2025December 31, 2024
 (In thousands)
Debt of Amkor Technology, Inc.:   
6.625% Senior notes, due September 2027 (1)
$525,000 $525,000 
2025 Revolving Credit Facility, applicable bank rate plus 1.75%, due May 2030 (2)
— — 
Term A Loans, applicable bank rate plus 1.75%, 6.05% as of June 30, 2025, due May 2030 (3)
500,000 — 
Debt of subsidiaries:   
Amkor Technology Korea, Inc.:
Term loan, fixed rate at 3.95%, due May 2027 (4)
— — 
Term loan, fixed rate at 2.12%, due December 2028
175,000 200,000 
Amkor Technology Japan, Inc.:
Short-term term loans, variable rate (5)— — 
Term loan, fixed rate at 1.20%, due December 2025
7,568 13,868 
Term loan, fixed rate at 1.23%, due December 2026
27,286 33,333 
Term loan, fixed rate at 1.59%, due December 2027
54,503 59,923 
Term loan, fixed rate at 1.80%, due December 2028
85,052 89,059 
Term loan, fixed rate at 2.05%, due December 2029
106,853 108,779 
Amkor Assembly & Test (Shanghai) Co., Ltd.:
Term loans, SOFR plus 0.75%, due June 2025
— 35,000 
Term loans, SOFR plus 0.75%, weighted average of 5.04% as of June 30, 2025, due 2025 (6)
54,500 55,500 
Term loans, SOFR plus 0.95%, weighted average of 5.25% as of June 30, 2025, due December 2026 (6)
43,500 44,000 
1,579,262 1,164,462 
Less: Unamortized discount and deferred debt costs, net(6,217)(5,002)
Less: Short-term borrowings and current portion of long-term debt(374,855)(236,029)
Long-term debt$1,198,190 $923,431 
(1)In June 2025, we issued a redemption notice for $125.0 million of the outstanding $525.0 million of our 6.625% Senior Notes due September 2027 (the “Senior Notes”). The Senior Notes will be redeemed on July 30, 2025. In accordance with the terms of the indenture governing the Senior Notes, the redemption price was 100% of the principal amount of the Senior Notes plus accrued and unpaid interest. The redemption of the Senior Notes was funded with proceeds from the new $500.0 million Term A Loans described below.
(2)In May 2025, we entered into a $1.0 billion senior secured revolving credit facility (the “2025 Revolving Credit Facility”) that replaced an existing revolving credit facility guaranteed by Amkor Technology Singapore Holding Pte. Ltd. (“ATSH”) and Guardian Assets, Inc. (“Guardian”). The maximum borrowing capacity under the 2025 Revolving Credit Facility is $1.0 billion. The 2025 Revolving Credit Facility includes an uncommitted optional accordion of up to $200.0 million, which may be incurred in the form of revolving commitment increases or term loans. As of June 30, 2025, $1.0 billion was available for future borrowings under the 2025 Revolving Credit Facility.
(3)In June 2025, we amended the 2025 Revolving Credit Facility and created a new tranche of term loans (the “Term A Loans”), which are secured and guaranteed on a pari passu basis to the revolver loans under the existing agreement. The Term A Loans have an aggregate principal amount of $500.0 million and will mature in May 2030. The payments are subject to 2.5% amortization of the original principal amount per year in 2026 and 2027, and 5% thereafter, payable quarterly, with the remaining balance due at maturity. The proceeds will be used for the partial redemption of the Senior Notes, prepayment of outstanding term loans under Amkor Assembly & Test (Shanghai) Co., Ltd. (“AATS”) and general corporate purposes.
(4)In April 2021, we entered into a ₩80.0 billion term loan agreement with the option to borrow and re-borrow the funds up to six times per year through April 2024 at a fixed rate of 1.85%. In May 2024, we replaced this loan by entering into a ₩80.0 billion (approximately $59 million) term loan agreement with the option to borrow and re-borrow the funds up to six times per year through May 2027. Principal is payable at maturity, and interest is payable monthly at a fixed rate of 3.95%. As of June 30, 2025, ₩80.0 billion, or approximately $59 million, was available to be drawn.
(5)We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. As of June 30, 2025, $3.5 million was available to be drawn.
(6)In June 2025, we issued a prepayment notice for the remaining $98.0 million of outstanding term loans under AATS (the “AATS Loans”). We repaid the AATS Loans in July 2025 with proceeds from the new Term A Loans described above.
Certain of our debt is collateralized by the land, buildings, equipment and capital stock of subsidiaries. As of June 30, 2025, the collateralized debt balance was $1,054.3 million, of which $765.9 million of assets and subsidiary capital stock were pledged as collateral.
The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc., ATSH and Guardian guarantee certain debt of our subsidiaries. The agreements governing our indebtedness contain affirmative and negative covenants, including covenants to maintain a minimum interest coverage ratio and a maximum consolidated leverage ratio, which restrict our ability to pay dividends and could restrict our operations. These restrictions do not currently have a material impact on our ability to make dividend payments or stock repurchases.
We were in compliance with all debt covenants at June 30, 2025.