SK Hynix Issues 2 Trillion KRW EB Secured by Treasury Shares for "Operating Fund Procurement"

SK Hynix announced on the 3rd that it has decided to issue $1.5 billion (approximately 1.9745 trillion KRW) worth of overseas exchangeable bonds (EB) for the purpose of raising operating funds.

17,750,940 shares of SK Hynix treasury stock are subject to exchange. This represents 2.4% of the total issued shares.

The exchange price is 111,180 KRW, which is 127.5% of SK Hynix's closing price on the day. The bond maturity date is April 11, 2030. The exchangeable bonds will be listed on the Singapore Exchange.

SK Hynix stated, "The funds raised through the exchangeable bonds will be used as operating funds for the company, such as purchasing raw materials."

Due to the semiconductor market downturn, SK Hynix posted an operating loss of 1.0712 trillion KRW in the fourth quarter of last year, marking its first quarterly loss in 10 years. Securities firms estimate that the company will incur a multi-trillion KRW loss in the first quarter of this year as well.

The headquarters of SK Hynix in Icheon-si, Gyeonggi-do. [Image source=Yonhap News]

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