LG 2004 Annual Report Download - page 98

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
Terms and conditions for conversion
- Type of stock to be issued : registered common stock
- Number of shares convertible : 4,920,464 shares
- Conversion price : 68,900 per share
- Conversion period : September 12, 2003 through July 28, 2006
Upon a resolution of the Board of Directors, the Company issued foreign currency convertible bonds to Lehman Brothers Commercial
Corporation on May 17, 2004. The terms and conditions of issuance are as follows:
Type of bonds : Private convertible bond
Total face value of bonds : US$250 million (fixed exchange rate of 1,181.5 : US$1)
Date of issuance : May 17, 2004
Terms and conditions for issuance of bonds
- Coupon rate : 0% , Effective interest rate to maturity: 3.96%
- Maturity : May 17, 2007
- The Company redeems the bonds at 112.49% of face value in a lump sum on the date of maturity.
- Call option : The Company holds the right to redeem the bonds at 106.06% of face value any time between May 18, 2006 and 60
days before maturity, 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, ending on the date on which redemption notice is given.
- 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 106.06% of face value on the day after 18 months from the date of issuance.
Terms and conditions for conversion
- Type of stock to be issued : registered common stock
- Number of shares convertible : 3,049,221 shares
- Conversion price : 96,869 per share. The conversion price was adjusted upwards from 91,840 to 96,869, because the
average closing price of the common shares of the Company during the 20 consecutive Korea Exchange business days
preceding and including the second Korea Exchange business day prior to the day falling 6 months after the issue date is above
65,600.
- Conversion period : May 18, 2005 through May 7, 2007