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[Alpha Biz=(Chicago) Reporter Kim Jisun] The LG Chem issues foreign currency exchange bonds to secure investment resources for global new drugs.
The LG Chem announced on November 11 that it will issue $ 2 billion worth of foreign exchange bonds for the purpose of raising global investment funds.
Exchangeable bonds are a type of corporate bond that is entitled to exchange for stocks held by the issuing company (treasury stock or third-party stock). The maturity is 5 years and 7 years. The maturity interest rate is 0.75∼1.25% for 5 years and 1.35∼1.85% for 7 years.
The exchange target of this exchange bond is LG Energy Solution common stock. The LG Chem is the largest shareholder with a 81.84% stake in its subsidiary, LG Energy Solutions. The exchange price per share will be issued at a premium of 25∼30% for five-year products and 30∼35% for seven-year products based on the closing price of 550,000 won for LG Energy Solutions on the 11th.
If the full exchange is made based on this amount, the exchange target is about 3.695 million shares, which is about 1.6% of the total number of shares issued by LG Energy Solutions. The exact premium and issuance amount will be finalized on the morning of the 12th, depending on the results of investor recruitment.
The LG Chem plans to use the funds secured through this to invest in facilities and operate funds to expand the future growth base.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
