STATSCHP

STATS ChipPAC Ltd (“STATS ChipPAC”) announced that it is in the process of changing its accounting standards from accounting principles generally accepted in the United States of America (“U.S. GAAP”) to Singapore Financial Reporting Standards (“SFRS”) for reporting in the fourth quarter and fiscal year ended 26 December 2010. It estimates these adjustments to result in a decline in each of its total assets and total shareholders’ equity attributable to STATS ChipPAC by US$121.0 million in each of the last three fiscal years.

It also announced that it intends to offer, subject to market conditions and other factors, US$200 million in aggregate principal amount of senior notes due 2016 (the “Notes”). The Notes are expected to pay interest semi-annually, to constitute senior, unsecured obligations of STATS ChipPAC and to be guaranteed by all of STATS ChipPAC’s wholly-owned subsidiaries, other than wholly-owned subsidiaries located in the People’s Republic of China and, if required regulatory approvals are not obtained, South Korea. STATS ChipPAC intends to use the net proceeds from the issuance of the Notes, together with cash on hand, to prepay in full the remaining US$234.5 million outstanding under its $360.0 million senior term loan facility obtained in May 2010.

 

 

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