MagnaChip refinances through $225 million bond

The Korean semiconductor company will use the proceeds to redeem its costly existing debt.
<div style="text-align: left;">
MagnaChip has bucked the market through expansion into smartphones
</div>
<div style="text-align: left;"> MagnaChip has bucked the market through expansion into smartphones </div>

Korea’s MagnaChip Semiconductor, which is listed on the New York Stock Exchange, raised $225 million on Tuesday through an eight-year high-yield bond.

The company, which designs and manufactures analogue and mixed-signal semiconductor products, priced the 6.625% senior notes at 99.5, representing a 448bp spread over the 2021 US treasuries. Moody's upgraded the company to B1 from B2 in June.

MagnaChip will use the proceeds to take out its existing $203.7 million in senior debt. Those notes were originally issued in April 2010 as part of a $250 million offering and carry a hefty 10.5% coupon, which means the company is on the hook for $21.4...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222