Amkor Technology Inc. (NASDAQ: AMKR) announced the pricing of $1 billion in convertible senior notes due 2031 in a private offering to qualified institutional buyers. The notes carry a 0% interest rate and are scheduled to settle on May 5, 2026.

The semiconductor packaging and test services company granted initial purchasers an option to purchase up to an additional $150 million in notes within 13 days of issuance. The notes will be guaranteed by Amkor subsidiaries that currently guarantee the company's existing 5.875% senior notes due 2033.

The convertible notes can be exchanged for 9.4013 shares of common stock per $1,000 principal amount, representing an initial conversion price of approximately $106.37 per share. This marks a 52.5% premium over Amkor's closing stock price of $69.75 on April 30, 2026.

Before April 15, 2031, noteholders can convert their securities only under specific conditions. After that date, conversion is permitted at the holder's discretion until maturity on July 15, 2031. Amkor may redeem the notes starting May 15, 2029, if the stock price exceeds 130% of the conversion price for a specified period.

Amkor estimates net proceeds of approximately $981.7 million after fees and expenses, or $1.13 billion if purchasers exercise the full overallotment option. The company plans to use $49 million for capped call transactions and the remainder for general corporate purposes, including capital expenditures.

The capped call transactions have an initial cap price of $139.50 per share, representing a 100% premium over the April 30 closing price. These transactions are designed to reduce potential dilution from note conversions.