UMC Announces Exchangeable Bond Pricing
Taipei, Taiwan, R.O.C.
- November 30, 2009 -United Microelectronics Corporation (TAIEX:
2303, NYSE: UMC) today announced the pricing of its offerings of
two Exchangeable Bonds due 2014. One tranche with US$127.2 million
aggregate principal amount can be exchanged into common shares of
Unimicron Technology Corporation ("Unimicron") held or
to be held by UMC. The other tranche with US$80 million aggregate
principal amount can be exchanged into common shares of Novatek
Microelectronics Corporation ("Novatek") held or to be
held by UMC. The sale of the bonds is expected to close on December
2, 2009. UMC intends to use the net proceeds to fund purchases of
Unless being redeemed
or exchanged earlier, the bonds are redeemable at maturity at the
principal amount of the bonds with an interest calculated at the
rate of -0.5% per annum. The bonds are exchangeable into Unimicron
common shares and Novatek common shares at an initial exchange price
of NT$51.1875 and NT$108.58 per share, respectively, subject to
adjustment in certain circumstances. On November 30, 2009, the closing
price per share of Unimicron and Novatek on the Taiwan Stock Exchange
was NT$40.95 and NT$89.00, respectively. Application has been made
to list the bonds on the SGX-ST.
The bonds will be offered
outside the United States pursuant to Regulation S under the United
States Securities Act of 1933, as amended. The bonds have not been,
and will not be, registered by UMC under the Securities Act and
will not be offered or sold in the United States.
These bonds are the first
two exchangeable bonds issued by a Taiwanese company since February
2008. UMC believes the pricing terms fully reflect its solid financial
position and excellent credit record. This is consistent with UMC's
policy to dispose its non-core holdings in a non-disturbing manner.
Going forward, UMC will continue to focus on its core business while
maximizing the benefits to UMC's stockholders.
Credit Suisse is the
sole bookrunner for the Exchangeable Bond offering.
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry
that provides advanced technology and manufacturing services for
applications spanning every major sector of the IC industry. UMC's
customer-driven foundry solutions allow chip designers to leverage
the strength of the company's leading-edge processes, which include
production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide
range of specialty technologies. Production is supported through
10 wafer manufacturing facilities that include two advanced 300mm
fabs; Fab12A in Taiwan and Singapore-based Fab12i are both in volume
production for a variety of customer products. The company employs
approximately 13,000 people worldwide and has offices in Taiwan,
Japan, Singapore, Europe, and the United States. UMC can be found
on the web at http://www.umc.com.