Company: AMKR
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001047127-25-000168
Chunk: 198

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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 and agreements governing our current and future indebtedness could restrict our operating flexibility.

The indentures and agreements governing our existing debt contain, and debt we incur in the future may contain, affirmative and negative covenants that materially limit our ability to take certain actions, including our ability to incur debt, pay dividends and repurchase stock, make certain investments and other payments, enter into certain mergers and consolidations, engage in sale leaseback transactions and encumber and dispose of assets.  In addition, certain of our debt agreements contain, and our future debt agreements may contain, financial covenants and ratios.

The breach of any of these covenants by us, or the failure by us to meet any of the financial ratios or conditions, could result in a default under any or all of such indebtedness.  If a default occurs under any such indebtedness, all of the outstanding obligations thereunder could become immediately due and payable, which could result in a default under our other outstanding debt and could lead to an acceleration of obligations related to other outstanding debt.  The existence of such a default or event of default could also preclude us from borrowing funds under our revolving credit facilities.  Our ability to comply with the provisions of the indentures, credit facilities and other agreements governing our outstanding debt and indebtedness we may incur in the future can be affected by events beyond our control, and a default under any debt instrument, if not cured or waived, could have a material adverse effect on us.

Our substantial indebtedness could have a material adverse effect on our financial condition and prevent us from fulfilling our obligations.

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We have a substantial amount of debt, and the terms of the agreements governing our indebtedness allow us and our subsidiaries to incur more debt, subject to certain limitations.  As of June 30, 2025, our total debt balance was $1,573.0 million, of which $374.9 million was classified as a current liability and $1,054.3 million was collateralized indebtedness at our subsidiaries.  We may consider investments in joint ventures, increased capital expenditures, refinancings or acquisitions which may increase our indebtedness.  If new debt is added to our consolidated debt level, the related risks that we face could increase. 

Our substantial indebtedness could:

•make it more difficult for us to satisfy our obligations with respect to our indebtedness, including our obligations under our indentures to purchase notes tendered as a result of a change in control of Amkor;

•increase our