GIS Acquires 4.5 Billion Won of 8th Series Bonds with Warrants Before Maturity

GIS has acquired 30% of its outstanding bonds with warrants (BW) before maturity using its own funds.

According to GIS on September 29, the company directly exercised the call option on the bonds, even though approximately four years remain until maturity. GIS will acquire the 8th series of bearer, unsecured, privately placed bonds with warrants, exercising the call option on a principal amount of 4.5 billion won, and will complete the purchase before maturity. The original issuance size for these BWs was 15 billion won, so the current acquisition covers 30% of the total issuance.

The actual purchase price is approximately 4,545.17 million won, reflecting a repayment rate of 101.0037%. All acquisition funds will be provided entirely from the company's own funds. Following this acquisition, the remaining principal balance of the BW will be reduced from the original 15 billion won to 10.5 billion won.

This transaction is notably different from a typical early redemption, in which the company would repay funds in response to the bondholder's put option. Instead, GIS is directly exercising the call option secured at the time of issuance to buy back part of the outstanding bonds.

The maturity date of these BWs is September 2030. By proactively acquiring 30% of the issuance, amounting to about 4.5 billion won using its own funds with about four years remaining to maturity, the company has secured broader options for future capital policy and fund management. GIS plans to decide whether to cancel or resell the reacquired bonds in the future.

A company official stated, "This acquisition was made through the direct exercise of the call option attached to the outstanding BWs by the company," and added, "The decision was made after a comprehensive review of our current financial position, business progress, and long-term fund management plans."

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