ChipMOS secures $181M bank loan for equipment purchases

By Colleen Taylor, Contributing Editor -- Electronic News, 6/13/2007

Taiwan-based test and assembly services provider ChipMOS Technologies Ltd. announced today that its ChipMOS Taiwan subsidiary has entered into a $181.8 million (6 billion new Taiwanese dollars) syndicated loan facility with a bank syndicate consisting of ten local banks in Taiwan.

The company said that most of the proceeds of the loan will be used by ChipMOS Taiwan for equipment purchase in 2008 and 2009.

The five-year floating-rate facility provides the $181.8 million credit line to ChipMOS Taiwan. All of the ten participating banks are acting as the co-lead managers of the syndicate. The ten banks are Bank of Taiwan, Taiwan Cooperative Bank, Land Bank of Taiwan, Mega International Commercial Bank, Hua Nan Commercial Bank, First Commercial Bank, Taishin International Bank, Bank SinoPac, Taiwan Shin Kong Commercial Bank, and TaChong Bank.

"I would like to express my appreciation to Bank of Taiwan, Taiwan Cooperative Bank and the other eight banks for their confidence in and support of ChipMOS," S.J. Cheng, ChipMOS' chairman and CEO, said in a statement. "We are pleased that we were able to set up this credit facility on favorable terms in order to secure funding for most of the long-term capital requirements for 2008 and 2009."