ChipMOS (Nasdaq:IMOS) recently announced that in separate privately negotiated transactions, it has entered into agreements with two investors. ChipMOS (Nasdaq:IMOS) is a leading independent provider of semiconductor testing and assembly services to customers in Taiwan, Japan, and the U.S. This separate privately negotiated transaction has been entered into agreements with two investors. The first holding in aggregate US$54,000,000 of the ChipMOS (Nasdaq:IMOS) outstanding 1.75% convertible senior notes due 2009 (the "2009 Notes"). Secondly, ChipMOS (Nasdaq:IMOS) has entered a separate private placement transaction through which it expects to raise US$10,000,000.
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The transactions, subject to customary closing conditions, are expected to close in October 2009. ING Wholesale Banking is acting as the Company's financial advisor on the exchange of the 2009 Notes and the new investment. In the first transaction, an institutional investor will exchange US$45,000,000 in outstanding 2009 Notes for US$15,300,000 in cash and US$15,750,000 in new convertible notes of the Company due 2014 (the "New Notes"). The New Notes will be convertible into common shares of the Company at a conversion price of $1.50 per share, and pay interest at 10.0% per annum. The New Notes pay interest on a quarterly basis .In the second transaction, ThaiLin Semiconductor Corp., a subsidiary that is 42.9% owned by the Company's wholly owned subsidiary, ChipMOS TECHNOLOGIES INC. ("ThaiLin"), will exchange US$9,000,000 in outstanding 2009 Notes for US$3,150,000 in new convertible notes with a coupon of 10% (the "10% Notes") and US$5,850,000 in new convertible notes with a coupon of 8% (the "8% Notes"), in both cases due 2014. In addition, in a private placement, ThaiLin will purchase US$10,000,000 of the 8% Notes at face value. The 10% Notes will be convertible into common shares of the Company at a conversion price of $1.50 per share, subject to adjustment under certain circumstances. The 8% Notes will be convertible into common shares of the Company at a conversion price of $1.25 per share, subject to adjustment under certain circumstances.
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