A Case Study of Syndicated Loan Strategy on IC Packaging and Testing Company

• Main Authors: REN-TI DIAU, 刁仁悌
• Other Authors: DAY-YANG LIU
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/7sv9ub

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 105 === For enterprise to continue sustainable development, financing and use of funds is vital, bank financing is one of the common ways to raise funds for enterprise. Syndicated loan is part of a bank financing tool,it allows enterprise to obtain large scale financing, a lower overall cost and administrate work in negotiating with an individual bank, and syndicated loan is long-term loans, it can improve the financial ratio and beautify the financial statements. Taiwan’s semiconductor manufacturers play an important role in the international market, among the industry, IC packaging and testing companies not only serve as part of the supply chain, they also have the world’s highest productivity rate. In recent years, the trend tends to be for bigger company to expand bigger. In order to stay competitive, many companies continuously to increase productivity and processing rate, hence capital expenditure will soared. In additional to own capital, companies will need to raise funds from capital market or bank loans, and the amount of bank financing is usually large, non-single banks can bear, so the syndicated loan is the IC packaging and testing companies to deal with the common way of bank financing. The methods applied to this research is a case study, we examine the implementation of syndicated loan in helping a Taiwanese IC packaging and testing company recover from a financial crisis through looking into the organization background, motive, syndication process, and analyzing the effect it had brought to the company. The results are summarized as follows: III 1. The financial crisis happened because the company was expanding too fast, and its overseas investment failed to bring in profits as expected. 2. With the issuance of syndicated loan, the company had successfully gone through a financial crisis and strengthening product competitiveness. 3. By financial improvement and gaining the ability to negotiate with banks, the company was able to lower its’ capital cost. 4. Syndicated loan allows enterprises to raise significant amounts of funds and improve financial situation. 5. Financial structure, core competency, and perfect credit conditions are key factors that will determine if enterprises are granted for syndicated loan. 6. Banking industries should play its social responsibility in assisting enterprises with operating values to overcome their financial needs.