[Edaily Reporter Kim Ji-woo ] Pulmuone Corporate(017810)The company will raise a total of 70 billion won through the issuance of redeemable convertible preferred stock and hybrid capital securities. The funds raised will be used to repay high-interest convertible bonds and other measures to improve its financial structure.

Pulmuone Corporate announced today that it held a board of directors meeting on the 29th and decided to issue 3,375,812 shares of registered, voting, redeemable convertible preferred stock (RCPS) to NV Mezzanine Growth Equity Private Investment Partnership.

The issue price for the new shares is 11,849 won per share, bringing the total amount raised to 39.9999 billion won. The payment date is the 12th of next month.

The RCPS being issued this time are unlisted shares. The issue price was calculated by applying a 35% premium to the base share price of 8,777 won.

Pulmuone Corporate plans to use the funds raised from this issuance to redeem the 60 billion won Series 71 Convertible Bonds issued in September 2023. The interest rate on these convertible bonds is 9.5% per annum. Although they mature in September 2053, Pulmuone Corporate plans to redeem them early in September of this year.

RCPS are securities that investors can convert into common stock under certain conditions, and the company can redeem them using distributable earnings.

Along with this RCPS issuance, Pulmuone Corporate has decided to issue 30 billion won worth of hybrid capital securities. Accordingly, the total amount of funds raised by Pulmuone Corporate as decided today is 70 billion won.

The hybrid capital securities are bearer, interest-bearing, unsecured bonds, and the issuer is the same entity as for the RCPS: VT Mezzanine Growth Equity Private Investment Partnership. They have a 30-year maturity ending on August 12, 2056, with a coupon rate of 2% per annum.

Pulmuone Corporate explained, “To improve our financial structure and secure stable funding, we selected the recipients of the third-party allocation after comprehensively considering factors such as investors’ willingness to invest, their ability to raise funds, and investment terms.”