Magnachip Semiconductor Enters Material Definitive Agreement
Ticker: MX · Form: 8-K · Filed: Dec 19, 2024 · CIK: 1325702
| Field | Detail |
|---|---|
| Company | Magnachip Semiconductor CORP (MX) |
| Form Type | 8-K |
| Filed Date | Dec 19, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $0.01, $26.5 million, $1 |
| Sentiment | neutral |
Sentiment: neutral
Topics: material-agreement, financial-obligation
TL;DR
Magnachip Semiconductor just signed a big deal, could be debt or something else major.
AI Summary
On December 16, 2024, Magnachip Semiconductor Corporation entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Delaware with IRS number 830406195, filed this 8-K report on December 19, 2024.
Why It Matters
This filing indicates a significant financial commitment or obligation for Magnachip Semiconductor, which could impact its financial standing and future operations.
Risk Assessment
Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or strategic shifts that carry inherent risks.
Key Numbers
- 20241216 — Event Date (Date of the material definitive agreement)
- 20241219 — Filing Date (Date the 8-K was submitted)
Key Players & Entities
- Magnachip Semiconductor Corporation (company) — Registrant
- December 16, 2024 (date) — Date of earliest event reported
- December 19, 2024 (date) — Filing date
- Delaware (jurisdiction) — State of incorporation
- 830406195 (identifier) — IRS Number
- 001-34791 (identifier) — SEC File Number
FAQ
What specific type of material definitive agreement did Magnachip Semiconductor Corporation enter into?
The filing states that the agreement is related to 'Entry into a Material Definitive Agreement' and 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant'.
What is the exact date of the earliest event reported in this filing?
The earliest event reported is dated December 16, 2024.
When was this 8-K filing submitted to the SEC?
This 8-K filing was submitted on December 19, 2024.
In which state is Magnachip Semiconductor Corporation incorporated?
Magnachip Semiconductor Corporation is incorporated in Delaware.
What is the SEC file number for Magnachip Semiconductor Corporation?
The SEC file number for Magnachip Semiconductor Corporation is 001-34791.
Filing Stats: 1,049 words · 4 min read · ~3 pages · Grade level 15.7 · Accepted 2024-12-19 16:30:58
Key Financial Figures
- $0.01 — ich registered Common Stock, par value $0.01 per share MX New York Stock Exchang
- $26.5 million — to an aggregate of KRW 38,000,000,000 ($26.5 million based on the KRW/USD exchange rate of K
- $1 — the KRW/USD exchange rate of KRW1,432.7:$1 as of December 16, 2024 as quoted by KE
Filing Documents
- d877874d8k.htm (8-K) — 28KB
- 0001193125-24-282046.txt ( ) — 154KB
- mx-20241216.xsd (EX-101.SCH) — 2KB
- mx-20241216_lab.xml (EX-101.LAB) — 19KB
- mx-20241216_pre.xml (EX-101.PRE) — 12KB
- d877874d8k_htm.xml (XML) — 4KB
From the Filing
8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): December 16, 2024 Magnachip Semiconductor Corporation (Exact name of Registrant as specified in its charter) Delaware 001-34791 83-0406195 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) c/o Magnachip Semiconductor, Ltd. 15F, 76 Jikji-daero 436beon-gil, Heungdeok-gu Cheongju-si , Chungcheongbuk-do , 28581 , Republic of Korea Not Applicable (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: + 82 ( 2 ) 6903-3000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $0.01 per share MX New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item1.01 Entry into a Material Definitive Agreement. On December 16, 2024, Magnachip Semiconductor, Ltd., a Korean limited liability company ("MSK") and indirect wholly-owned subsidiary of Magnachip Semiconductor Corporation (the "Company"), executed a Standard Credit Agreement (together with its General Terms and Conditions, the "Equipment Financing Credit Agreement") with Korea Development Bank ("KDB"). In connection with the Equipment Financing Credit Agreement, on December 16, 2024, MSK also entered into a Kun-Pledge Agreement (the "Equipment Pledge Agreement") with KDB with respect to the pledge by MSK in favor of KDB of certain machinery and equipment currently owned by MSK, which are located in its fabrication facility located in Gumi, Korea ("Fab 3 machinery and equipment"). The Equipment Financing Credit Agreement provides for loans for MSK's capital expenditures (the "CAPEX Loans") up to an aggregate of KRW 38,000,000,000 ($26.5 million based on the KRW/USD exchange rate of KRW1,432.7:$1 as of December 16, 2024 as quoted by KEB Hana Bank), which will be funded directly to capital expenditure supply vendors by KDB upon the submission of a request form by MSK with the necessary evidence such as purchase agreement, invoice and other documentation, as applicable. The Equipment Financing Credit Agreement and the related availability of CAPEX Loans allow MSK to allocate its own funds that would have otherwise been used for certain capital expenditures toward other operational needs and initiatives, enhancing financial flexibility and optimizing resource allocation to support the exploration and execution of strategic decisions.to enhance shareholder value. The Company has previously disclosed its intention that, from time to time, MSK may make special investments to enhance manufacturing capabilities by investing in new equipment to expand the Gumi facility, which the Company expects will have a positive impact on its enhanced Power product lineup, future new product development and revenue. The Company has a pipeline of new Power products including IGBT and SuperJunction MOSFETs that it expects to begin to contribute to wafer starts in its Gumi fabrication facility over the course of 2025 and beyond. The CAPEX Loans will bear interest at a variable rate equal to the 3-month CD rate quoted by KDB, plus 0.68%, which rate is adjusted quarterly. The initial interest rate on CAPEX Loans was 3.97% per annum. CAPEX Loans mature in 10 years from the initial loan disbursement date (the "Maturity Date"), with an initial 2-year (measured from the first loan disbursement date) interest-only payment period during which only interest is paid monthly, followed by 8 years of amortizing payments where the principal is repaid in equal installments every 3 months and interest is paid monthly. The Equipment Financing Credit Agreement contains customary representations of MSK in conne