Paik Kwang Industrial Co., Ltd. (KOSE:A001340) announced a private placement of series 18 unregistered coupon unguaranteed private exchangeable bonds for gross proceeds of KRW 5,000,000,000 on July 3, 2017. The transaction will involve participation from new investors IBK Capital Corporation, SK Securities Co., Ltd. (KOSE:A001510), and individual investor Jaeyeon won for KRW 1,000,000,000, KRW 500,000,000, and KRW 2,000,000,000 respectively. The expected payment date of the transaction is July 7, 2017.

The bonds will have zero coupon rate and will have a yield to maturity of 2%. The bonds will be convertible into 1,665,001 shares of the company at a fixed conversion price of KRW 3,003 from July 10, 2017 to June 7, 2022. The bonds will mature on July 7, 2022.

The transaction was approved by the board of directors of the company.