Pulmuone Expands Capital by a Total of 70 Billion Won... Improves Financial Structure by Early Repayment of High-Interest Perpetual CB

Pulmuone has set out to raise a total of 70 billion won in funds to secure financial soundness and repay high-interest debt. It is simultaneously pushing for the issuance of 30 billion won in private placement hybrid capital securities (perpetual bonds) and a third-party allotment capital increase of about 40 billion won.

According to the Financial Supervisory Service's electronic disclosure system on the 29th, Pulmuone has decided to issue 30 billion won in bearer, coupon-bearing, unsecured bond-type hybrid capital securities (the 73rd). The maturity is until August 12, 2056 (30 years), with a coupon rate of 2.00% per annum and an initial yield to maturity (YTM) of 7.0% per annum based on the internal rate of return (IRR). A step-up condition applies, where 2.0%p per annum is added 5 years after the issuance, and the interest rate increases by 1.0%p per annum each year thereafter.

Along with this, Pulmuone also resolved a third-party allotment capital increase worth 39,999.96 million won. The new shares to be issued are 3,375,812 shares of voting, registered redeemable convertible preferred stock (RCPS). The issuance price of the new shares is 11,849 won per share, applying a 35% premium rate to the base stock price (8,777 won).

The underwriter for both the hybrid capital securities (30 billion won) and the third-party allotment capital increase (about 40 billion won) is 'NV Mezzanine Growth Equity Private Equity Limited Partnership'. The subscription date and payment date are both on August 12.

Pulmuone plans to use the total of 70 billion won raised in this way to fully repay early (exercise the call option) the '71st Private Placement Perpetual Convertible Bonds (60 billion won scale, coupon 2%, guaranteed maturity annual compound interest 9.5%)' issued in 2023 during September. The intention is to significantly reduce financial costs and stabilize its financial structure by refinancing the high-interest perpetual CB reaching 9.5% per annum into hybrid capital securities and RCPS with relatively favorable conditions.