Chipmos Announces New $292M Credit Line

ChipMOS TECHNOLOGIES LTD. IMOS announced today that its majority-owned subsidiary, ChipMOS TECHNOLOGIES INC, has signed a NT$8.4 billion (approximately US$292 million) non-revolving credit line (the "Credit Facility") with a syndicate of thirteen Taiwan banks. The maximum five-year, floating rate Credit Facility will be secured by existing land and plant and equipment owned by ChipMOS Taiwan. Together with existing available cash of NT$1.0 billion (approximately US$34.8 million) and the proceeds from the Credit Facility, ChipMOS Taiwan will primarily target to refinance its existing bank debt and equipment leases. Under the Credit Facility, ChipMOS Taiwan has covenanted to (i) fully draw down the facility within six (6) months of the execution of the Credit Facility; (ii)make repayments on semi-annual installments pursuant to a repayment schedule; (iii) maintain certain financial ratios relating to its liquidity, interest payment and debt financing levels; (iv) maintain a repayment reserve account for the term of the Credit Facility with deposit in the account to be equivalent to at least two (2) installments of interest payment under the Credit Facility; and (v) make penalty-free advance repayments subject to certain terms and conditions as set out under the Credit Facility.