LG 2003 Annual Report Download - page 86

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86
Notes to Non-Consolidated Financial Statements
For the years ended December 31, 2003 and 2002
15. Long-Term Debt
Long-term debt as of December 31, 2003 and 2002 comprise the following:
(in millions)
Annual interest
rate (%) at
December 31, 2003 2003 2002
DEBENTURES
Private, non-guaranteed payable through 2006 5.7 - 16.5 ￦306,000 ￦380,000
Public, non-guaranteed payable through 2006 4.5 - 7.0 2,090,000 1,760,000
Floating rate notes in foreign currency,
payable through 2006 LIBOR + 0.5 - 1.9 682,746 720,240
Zero coupon rate convertible bonds in foreign
currency, payable through 2006 - 339,796 -
(US$858) (US$600)
3,418,542 2,860,240
Less: Current maturities (986,494) (690,040)
Discount on debentures (35,777) (26,359)
Conversion rights adjustment (13,840) -
￦2,382,431 ￦2,143,841
Upon a resolution of the Board of Directors on July 8, 2003, the Company issued foreign currency convertible
bonds in the Luxembourg Stock Exchange on August 11, 2003. The terms and conditions of issuance are as
follows:
*Type of bonds: Public convertible bond
*Total face value of bonds: US$287.5 million (fixed exchange rate of ￦1,179.2: US$1)
*Date of issuance: August 11, 2003
*Terms and conditions for issuance of bonds
- Coupon rate: 0%
- Maturity: August 11, 2006
- Call option: The Company holds the right to redeem the bonds at face value on or at any time after August 12,
2005, provided that the market value per share of common stock on the trading day immediately prior to the date
of the redemption notice, for at least 20 consecutive trading days within a 30 trading day period ending on the
trading day immediately prior to the date of the redemption notice, is at least 115% of the conversion price.
-Put option: The bondholder holds the right to exercise a put option, in which the bondholder may require the
Company to redeem the bonds at face value on the day 18 months from the date of issuance.
*Terms and conditions for conversion
-Type of stock to be issued: registered common stock