Chip maker Hynix to issue bonds worth $500 million

May 06, 2010
South Korean employees of Hynix Semiconductor walk past a logo of the company at a branch in Seoul in 2009. South Korea's Hynix Semiconductor, the world's second largest chip maker, said Thursday it would issue 500 million dollars of convertible bonds overseas, giving it a chance to expand as chip prices rise.

South Korea's Hynix Semiconductor, the world's second largest chip maker, said Thursday it would issue 500 million dollars of convertible bonds overseas, giving it a chance to expand as chip prices rise.

The hi-tech giant said its board approved the issuance this year of 557.9 billion won in five-year convertible bonds to secure operating funds and expand production capacity.

Funds raised "can be used for various ways, including refinancing convertible bonds issued earlier or for capital spending", spokeswoman Park Seong-Ae told Dow Jones Newswires, adding this had still to be decided.

Park said the company would not use the funds to build new memory chip plants despite robust demand for personal computers and smartphones, which have lifted chip prices.

In December 2007 Hynix issued 583 million dollars of convertible bonds to finance expansion. It has earmarked some 2.3 trillion won for capital spending this year, up from one trillion last year.

The company posted record quarterly sales in the three months to March on the back of strong demand, achieving a third straight quarter in the black.

Creditors have controlled Hynix since they rescued it with 4.6 billion dollars in 2001 and 2002, swapping the debt for shares.

They raised 813.5 million dollars by selling 6.67 percent of their stake in a block sale in March after failing to find a buyer for a major stake in the .

Explore further: The New York Times to cut 100 newsroom jobs

add to favorites email to friend print save as pdf

Related Stories

SKorea's Hynix swings to profit as chip industry recovers

Jan 21, 2010

South Korea's Hynix Semiconductor said Thursday it swung to a net profit in the fourth quarter, following a loss in the period the year earlier, in a further sign that the global chip industry is recovering from a two-year ...

S.Korea's Hynix notches record sales

Apr 22, 2010

South Korea's Hynix Semiconductor said Thursday it posted record quarterly sales in the three months to March on the back of strong demand, achieving a third straight quarter in the black.

Hynix reports sixth straight quarterly loss

Apr 24, 2009

South Korea's Hynix Semiconductor, the world's second-largest computer memory chipmaker, Friday reported a sixth straight quarterly loss due to weak chip prices sparked by a global recession.

SKorea's Hyosung group bids for Hynix: report

Sep 22, 2009

A minor business conglomerate in South Korea looks set to buy a major stake in the world's second biggest memory chip maker after becoming the only firm to submit a bid, a report said Tuesday.

SKorea's Hynix finally swings to profit

Oct 23, 2009

South Korea's Hynix Semiconductor, the world's second largest memory chip maker, Friday announced a profit for the third quarter after seven straight quarters of losses.

Recommended for you

The New York Times to cut 100 newsroom jobs

14 hours ago

The New York Times Co. says it is cutting about 100 newsroom jobs through buyouts and layoffs in an effort to trim costs and focus more on its digital efforts.

What's PayPal's first solo move?

Sep 30, 2014

PayPal's impending split from long-time partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challeng ...

AOL to feed more video, news to Microsoft's MSN

Sep 30, 2014

AOL will provide Microsoft's MSN with more video and additional news stories from popular sites such as The Huffington Post and TechCrunch in an expansion of a deal aimed at selling more digital advertising.

User comments : 0