Hanul Materials Science Extends Maturity of KRW 25.5 Billion BWs by One Year...Expects Short-Term Overhang Concerns to Ease

Hanul Materials Science has eased its short-term repayment burden by extending the maturity of KRW 25.5 billion worth of bonds with warrants (BWs) by one year. The company plans to use the additional time to focus on advancing its subsidiary's business and managing its financial stability.

Hanul Materials Science announced on October 19 that it had extended the maturity of its first series of bonds with warrants, with KRW 25.5 billion in outstanding principal, from January 25, 2027, to January 25, 2028.

The company held a board meeting that day and approved changes to the terms of its first series of bearer, unsecured, privately placed, non-detachable bonds with warrants, with the consent of the bondholders. By pushing back the maturity of the bonds, which had been due in early 2027, by one year, the company has reduced its near-term repayment burden.

The maturity extension was decided in consideration of the business schedule of its subsidiary JK Materials. JK Materials recently completed construction of its business site and obtained business approval, securing the foundation to move ahead with its operations in earnest.

Hanul Materials Science plans to use the additional time gained through the maturity extension to advance its subsidiary's business and manage its finances. In particular, the company expects that easing its short-term repayment burden will give it greater flexibility in managing funds over the medium to long term.

The company also expects the potential selling pressure from the exercise of warrants to ease in the short term.

A Hanul Materials Science official said, "We expect concerns about a short-term overhang (potential selling pressure) to ease as the warrant exercise period has been extended. We will strengthen the stability of our medium- to long-term funding and focus our management resources on advancing our subsidiary's business."

Meanwhile, Hanul Materials Science has issued approximately KRW 82.5 billion worth of convertible bonds (CBs) and BWs since 2024. Of this amount, approximately KRW 44 billion has been converted into shares or had warrants exercised, while bonds worth approximately KRW 9.3 billion have been canceled.

This content was produced with the assistance of AI translation services.