Daekyung Machinery & Engineering Co., Ltd. (KOSE:A015590) announced a private placement of 8th series of domestic unregistered coupon unguaranteed private convertible bonds for gross proceeds of KRW 9,300,000,000 and 10,277,492 common shares at a price of KRW 973 per share for gross proceeds of KRW 9,999,999,716, total gross proceeds of KRW 19,299,999,716 on March 6, 2018. The transaction will involve participation from GNCO Co., Ltd. (KOSDAQ:A065060), which will subcribe bonds for KRW 8,000,000,000 and common stock for KRW 9,999,999,716, individual investors Junyoung Park for KRW 400,000,000, Yeonwoo Lee for KRW 200,000,000, Juyeon Lee for 400,000,000, and Sunguk Hwang for KRW 300,000,000. The bonds will mature on March 7, 2021 and will be issued at par.

The bonds do not carry any annual coupon and will have a yield to maturity of 3%. The bonds are 100% convertible into common shares of the company at a fixed conversion price of KRW 1,127 from March 7, 2019 to February 7, 2021. The transaction has been approved by the board of directors of the company.

The payment date is March 7, 2018. The securities being issued are subject to a lock in period of one year.