MagnaChip Semiconductor, the non-memory arm recently sold by Hynix Semiconductor, has launched roadshows for a debut bond issue via lead managers Citigroup, JPMorgan and UBS. The deal has been structured to optimize the balance sheet of the company following its sale to a consortium of international private equity investors in October.
The deal comprises a $500 million senior secured issue, which has a 2011 maturity and both fixed and floating rate tranches, plus a $200 million senior subordinated tranche due 2014.
Ratings are about to be assigned and the company is expected to get a non-investment grade double-B rating below fellow foundry operators UMC...
