LG 2004 Annual Report Download - page 97

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
LG ELECTRONICS ANNUAL REPORT 2004
096
097
15. Debentures, Convertible Bonds and Long-Term Debt
Debentures and convertible bonds as of December 31, 2004 and 2003, consist of the following:
As per the resolution of the Board of Directors dated 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 remains at least 115% of the conversion price for at least 20 consecutive trading
days during the 30-day trading period ending on the redemption date.
- 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 after 18 months from the date of issuance.
Debentures
Private, non-guaranteed payable through 2006
Public, non-guaranteed payable through 2009
Floating rate notes of US $ 431 million
(2003:US $570 million) , payable through 2006
Convertible Bonds
Zero coupon rate convertible bonds of
US$ 287.5 million (2003 : US$ 287.5 million),
payable through 2006
Zero coupon rate convertible bonds of
US$ 250 million (2003:nil), payable through 2007
Less: Current maturities
Discount on debentures
Conversion rights adjustment
Premium for conversion rights
(in millions)
2004
126,000
2,070,000
449,878
2,645,878
339,796
296,975
636,771
3,282,649
(649,140)
(27,477)
(49,508)
37,092
2,593,616
Annual interest rate (%) at December 31, 2004
5.70 ~ 7.65
4.00 ~ 7.00
6M LIBOR + 0.5 ~1.25, 3M LIBOR+1.9
-
-
2003
306,000
2,090,000
682,746
3,078,746
339,796
-
339,796
3,418,542
(986,494)
(35,777)
(13,840)
-
2,382,431