stats-chippac-abandons-bond-buyback

Stats ChipPAC abandons bond buy-back

The company's majority-owner Temasek may re-launch the offer in September after failing to reach agreement with bondholders over the debt-swap.

By Rupert Walker

August 11, 2008

On August 9, Stats ChipPAC announced that its tender offer for $150 million of 7.5% senior notes due in 2010 and $215 million of 6.75% senior notes due in 2011 was terminated because the ôfinancing condition has not been satisfiedö. Friday was the deadline for a proposed buy-back of the existing bonds which was to be financed partly by the issuance of new bonds and partly by bank debt.

The Singapore-listed company, which is majority-owned by Singapore sovereign wealth fund Temasek, intends to re-launch the offer in September, according to sources close to the deal. There is a limitation on restricted payments clause attached to the outstanding bonds which requires their early retirement before...

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