Singapore's STATS ChipPAC plans debt financing

Thu. June 19, 2008; Posted: 09:23 PM

SINGAPORE, Jun 20, 2008 (Thomson Financial via COMTEX) -- STTSY | Quote | Chart | News | PowerRating -- Singapore chip tester and packager STATS ChipPAC Ltd. said on Friday its will pursue debt financing to fund its proposed cash distribution to shareholders under a capital reduction scheme.

The company will distribute as much as $813 million in cash to shareholders based on the capital reduction exercise proposed in January.

"The debt financing is expected to consist of a private placement of senior notes and senior secured credit facilities comprising a term loan and a revolving credit facility," STATS ChipPAC said in a statement.

STATS ChipPAC said it has started a cash tender offer and consent solicitation for $150 million senior notes due 2010 and for $215 million senior notes due 2011.

($1 = S$1.36)

pearl.bantillo@thomsonreuters.com

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