SFA Semicon Philippines Corp. (SSP) has renewed a $20-million loan agreement with its South Korean parent to support capital expenditures (capex) and refinance existing loans.
In a statement to the exchange on Tuesday, SSP said it signed a new agreement with SFA Semicon Co. Ltd. (SSK) to extend its $30-million medium-term loan agreement that was originally signed in 2018.
SSP said it had already paid the $10 million from the loan program, while the remaining $20 million has been renewed.
The new deal will be subject to an interest rate of 4.6% per annum and will mature in August 2023.
The $20 million will be used to fund SSP’s capex plans and support its outstanding obligations with BDO Unibank, Inc.
“The renewal of the loan is a testament to the commitment of SSK in the future of the company and its plan to further strengthen its world-class manufacturing operations and financial condition,” SSP President Joon Sang Kang said in the statement.
Also on Tuesday, SSP reported its second-quarter earnings grew nearly eight times to $5 million, as revenues increased 12% to $93.52 million.
On a six-month basis, the company’s income soared to $6.81 million from $280,960 last year. Revenues are up 20% to $172.38 million.
SSP is a manufacturer of semiconductor memory chips for South Korea’s Samsung Electronics. It operates a plant in Clark Freeport Zone in Pampanga.
Shares in SSP at the stock exchange shed two centavos or 1.36% to P1.45 each on Tuesday. — Denise A. Valdez
