SD System Co., Ltd. (KOSDAQ:A121890) announced a private placement to issue series 3 unregistered coupon unguaranteed private placement convertible bond of KRW 10,000,000,000, series 2 unregistered coupon unguaranteed private placement convertible bond of KRW 10,000,000,000 and series 1 unregistered coupon unguaranteed private placement convertible bond for KRW 10,000,000,000; for aggregate gross proceeds of KRW 30,000,000.000 on May 24, 2019. The transaction will include participation from Kairos Private Equity Co., Ltd. for series 3 bonds, Fiber Co., Ltd. for series 1 and JWL Co., Ltd. for series 2. The series 3, series 2 and series 1 coupon carry an interest rate of 5% and yield to maturity of 5%. The series 3 bonds and series 2 bonds will mature on July 23, 2022 and series 1 will mature on July 16, 2022.

The series 3, series 2 bonds, and series 1 bonds are fully convertible into 2,229,654 common shares of the company at conversion price of KRW 4,485 per share which represents 20.28% stake of the company. The conversion period of series 3 bonds and series 2 bonds starts at July 23, 2020 and ends at June 23, 2022 and series 1 bonds starts at July 16, 2020 and ends at June 16, 2022. The subscription date of series 3 bonds, series 2 bonds and series 1 bonds is May 24, 2019.

The series 3 bonds and series 2 bonds are expected to be issued on July 23, 2019 and series 1 bonds is expected to be issued on July 16, 2019. The transaction has been approved by the board of directors of the company on May 24, 2019.