LG 1999 Annual Report Download - page 38

6
3
Annual Interest Rate (% ) at December 31, 1999 In Millions
Won currency, issued in 1998 1.00 100,000
133,136
Exchangeable Bonds (* 3)
Foreign currency, issued in 1997 0.25 66,623
(US$ 75)
2,701,209
Less : treasury debentures (117,171)
current maturities (1,154,450)
discount on debentures (38,170)
premium on debentures 7,589
￦
1,399,007
Won currency loans
Korea Development Bank 5.5 - 10.1
￦
91,266
Kookmin Bank 5.0 - 11.8 4,439
Korea Technology Banking Corporation 6.5 - 8.5 6,104
Housing and Commercial Bank 3.0 - 9.5 853
Hana Bank 7.0 920
Hanvit Bank 8.5 30,000
133,582
Foreign currency loans
Korea First Bank Libor + 0.625 10,205
Korea Development Bank 8.9 12,022
Korea Development Bank Libor + 0.5 45,816
Hanvit Bank Libor + 0.4 66,386
Chohung Bank Libor + 0.4 96,848
Korea Exchange Bank Libor + 0.4 171,810
Kookmin Bank Libor + 1.25 1,987
Export-Import Bank of Korea Libor + 0.625 4,503
Citi Bank Libor + 0.9 13,678
Banque Paribas Libor + 0.7 9,384
Bank of Tokyo-Mitsubishi Libor + 0.8 1,626
Societe General Libor + 0.6 21,561
Sumitomo Bank Libor + 0.65 14,903
Bank One Libor + 2.5 11,472
482,201
US$ 415
￥
646
Less : current maturities (217,800)
￦
397,983
In relation to guaranteed debentures, the Company pays guarantee fees of 0.1% ~ 0.5% per annum.
Treasury debentures of
￦
117,171 million held by the Company as of December 31, 1999 are Won currency convertible bonds and a
portion of exchangeable bonds.
(* 1) In 1985 and 1995, the Company issued foreign currency denominated floating rate notes aggregating US$ 2 million and Hong Kong $550
million, which are due on April 25, 2000 and May 25, 2000, respectively. Early redemption may be called for at the option of the
noteholders or the Company under the terms of issuance. LG Chemical Ltd., an affiliated company, has guaranteed repayment of the
notes issued in 1985.
(* 2) In 1991, the Company issued foreign currency denominated convertible bonds aggregating US$ 70 million, bearing interest at 3.25% per
annum. The bonds are convertible into non-voting preferred stock through November 2006, unless previously redeemed, at a specified
conversion price, subject to adjustment based on the occurrence of certain events as provided for in the offering agreement. The
adjusted conversion price as of December 31, 1999 is
￦
16,343 per share. The fixed rate of exchange applicable to the exercise of the
conversion rights is
￦
726.50 per US$ 1.00. The bonds will mature on December 31, 2006 at par value, unless previously converted or
redeemed. Any bondholder may redeem all or some of the bonds held on June 24, 1999 at 144.926% of the principal amount of such
bonds, together with interest accrued to the date of redemption.
In 1996, the Company issued foreign currency denominated convertible bonds aggregating US$ 40 million, bearing interest at
1.25% per annum. The bonds are convertible into common stock through October 2006, unless previously redeemed, at a specified
conversion price, subject to adjustment based on the occurrence of certain events as provided for in the offering agreement. The
adjusted conversion price as of December 31, 1999 is
￦
22,174 per share. The fixed rate of exchange applicable to the exercise of
the conversion rights is
￦
827.4 per US$ 1.00. The bonds will mature on November 26, 2006 at par value, unless previously
converted or redeemed. Any bondholder may redeem all or some of the bonds held on November 26, 2001 at 133.20% of the