SK Hynix raises $1.7 billion convertible bond amid chip glut

April 04, 2023 01:28 PM AEST | By Reuters
Follow us on Google News:
Image source: Reuters

SEOUL (Reuters) - South Korea's SK Hynix, the world's second-largest memory chip maker, has raised $1.7 billion in a convertible bond deal that comes as chipmakers' profits suffer due to a global semiconductor glut driven by an economic slowdown.

The money will be used for operational funds such as buying chip production materials, SK Hynix said in regulatory filing on Tuesday. It earmarked 20.1 million treasury shares, or a 2.8% stake, for possible conversion.

The bonds, to be listed in Singapore, have a coupon of 1.75% a year and will mature in 2030, according to a separate term sheet seen by Reuters.

Shares in SK Hynix fell as much as 4% in Tuesday trade, while the wider market rose 0.4% as of 0238 GMT.

SK Hynix posted a record quarterly operating loss of 1.7 trillion won ($1.38 billion) in the September-December quarter.

Analysts forecast a much worse loss in the quarter ended March 31 before an expected memory chip industry rebound in the second half of the year.

"This financing is expected to end market concerns about a short-term liquidity crunch," Kim Kwang-jin, an analyst at Hanwha Investment & Securities, wrote in a note on Tuesday.

($1 = 1,308.0600 won)

(Reporting by Joyce Lee; Editing by Himani Sarkar and Jamie Freed)


The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK