MOTREX to Issue KRW 59 Billion in Exchangeable Bonds Using JEONJIN CONSTRUCTION ROBOT Stake
MOTREX, a mobility solutions specialist, plans to issue exchangeable bonds (EBs) exchangeable for its subsidiary JEONJIN CONSTRUCTION ROBOT's common shares.
MOTREX disclosed on October 30 that it had decided to issue KRW 59 billion worth of exchangeable bonds exchangeable for its subsidiary JEONJIN CONSTRUCTION ROBOT's common shares.
The exchangeable bonds will be issued privately in registered, unsecured form. The exchange price will be set at a 20% premium to the base share price, and payment is scheduled for December 2. The bonds will mature in three years, on December 2, 2029.
The proceeds will be used for working capital to meet future funding needs under the shareholder agreement signed during the acquisition of JEONJIN CONSTRUCTION ROBOT.
The issuance is structured to use existing shares of JEONJIN CONSTRUCTION ROBOT held by MOTREX, so neither MOTREX nor JEONJIN CONSTRUCTION ROBOT will issue new shares. Accordingly, the total number of shares outstanding at either company will not increase.
The terms also include a call option that may be exercised if JEONJIN CONSTRUCTION ROBOT's closing price exceeds 135% of the exchange price for 10 consecutive trading days. This gives the company the flexibility to respond to future share-price trends and its funding needs.
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A MOTREX official said, "We believe the financing terms—a 0% coupon rate and yield to maturity, and an exchange price set at a 20% premium—reflect investors' expectations for JEONJIN CONSTRUCTION ROBOT's business competitiveness and medium- to long-term growth prospects. We pursued financing on favorable terms based on the subsidiary's growth potential, including its ability to meet global infrastructure and reconstruction demand and expand its construction robot business."
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