Globalfoundries Singapore’s US$375 million ($528.6 million) in 5.75% bonds due in August jumped after the company, formerly known as Chartered Semiconductor Manufacturing, announced a buyback offer for the notes, reported Bloomberg.

 

The notes rose to 101.253 cents on the dollar from 100.5 cents yesterday, according to an average of prices from Asian banks compiled by Bloomberg. The yield plunged to 2.831% from 4.572%, the data show.

Globalfoundries is offering 102.125 cents on the dollar to bondholders tendering their notes before 5:00 p.m. New York time on Mar 5, it said in a Singapore stock exchange filing today. Credit Suisse Group AG is managing the tender, the filing shows.

 

Globalfoundries Singapore was created after Advanced Technology Investment Co., owned by the Abu Dhabi government, bought Chartered Semiconductor for $2.5 billion in September and merged it with Globalfoundries Inc., a chipmaker ATIC created with Advanced Micro Devices Inc. in 2008. The newly-created company is seeking to reduce its debt, a person familiar with the buyback offer said today.

 

Chartered Semiconductor has US$530 million of debt maturing this year and a further US$639 million by the end of 2013, Bloomberg data show.

 

The cost of credit-default swaps protecting Chartered Semiconductor’s debt from non-payment fell 131 basis points to 168 basis points since the acquisition was announced on Sept. 7, prices from CMA DataVision in New York show. A basis point is 0.01percentage point.