By P.R. Venkat
South Korea's LG Display Co. Ltd. (034220.SE) is planning to raise up to $700 million via convertible bonds to partially finance its OLED-related business, according to a term sheet seen by The Wall Street Journal on Tuesday.
The convertible bonds will be due in 2024 and are likely to carry an annual coupon of 1.0%-1.5%, the term sheet shows.
If the bonds converted, it would translate to as many as 41 million shares at a conversion price of between 19,687.70 Korean won and 20,475 Korean won (US$16.65-US$17.31) each.
LG Display, one of the world's biggest makers of display panels used in smartphones and televisions, had said last week that it will continue stepping up efforts to shift to a business structure that is more focused on organic light-emitting diodes, or OLEDs, in the latter half of 2019. The company also stated plans for an additional US$2.53 billion investment in its OLED business.
Bank of America Merrill Lynch and Morgan Stanley are acting as advisors for the deal.
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