RFsemi Technologies, Inc. (KOSDAQ:A096610) announced a private placement of series 1 unregistered coupon unguaranteed private convertible bond for gross proceeds of KRW 6,000,000,000 on October 15, 2018. The transaction will involve participation from Synergy Asset Management Co., Ltd. for KRW 2,400,000,000, Shinhan Capital Co., Ltd. for KRW 1,000,000,000, EN Venture Partners Co., Ltd. for 500,000,000, Global Won Mezzanine Multi Strategy Hedge Fund 1, A1 B Type Grand Prix Hedge Fund, A1 B Type Prime Hedge Fund and A1 B Type Plus Hedge Fund through NH Investment & Securities Co., Ltd. (KOSE:A005940) for KRW 750,000,000, Global Won Mezzanine Hedge Fund 3 through Mirae Asset Daewoo Co., Ltd. (KOSE:A006800) for KRW 400,000,000, Global Won Mezzanine Hedge Fund 1 through NongHyup Bank for KRW 300,000,000, Korea Securities Finance Corporation for KRW 400,000,000, KB Securities Co., Ltd. for KRW 250,000,000. The bonds will have no coupon rate and yield to maturity of 3% each maturing on October 17, 2023 will be issued at par.

The bonds will be fully convertible into 1,052,627 shares of the company at a fixed conversion price of KRW 5,700 per share from October 17, 2019 to September 17, 2021. The company has the call option for early redemption of bonds. The bondholder has a put option for early redemption at par after a period of one year and bond is prohibited from conversion for a period of 1 year.

The subscription and payment date of the transaction is October 17, 2018. The transaction was approved by the board of directors of the company.