Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 184

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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.  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.

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 March 31, 2025, our total debt balance was $1,149.3 million, of which $236.5 million was classified as a current liability and $628.9 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. 

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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 vulnerability to general adverse economic and industry conditions;

•limit our ability to fund future working capital, capital expenditures, research and development and other business opportunities, including joint ventures and acquisitions;

•require us to dedicate a substantial portion of our cash flow from operations to service payments of interest and principal on our debt, thereby reducing the availability of our cash flow to fund future working capital, capital expenditures, research and development expenditures and other general corporate requirements;

•increase the volatility of the price of our common stock;

•limit our flexibility to react to changes in our business and the industry in which we operate;

•place us at a competitive disadvantage to any of our competitors that have less debt;

•limit, along with the financial and other covenants in our indebtedness, our ability to borrow additional funds;

•limit our ability to refinance our existing indebtedness, particularly during periods of adverse credit market conditions when refinancing indebtedness may not be available under interest rates and other terms acceptable to us or at all; and

•increase our cost of borrowing.

We are exposed to fluctuations in interest rates and changes in credit risk, which could have a material adverse impact on our earnings as it relates to