[Edaily Reporter Park Jung-Soo ] #NBR Motion Co., Ltd., a company specializing in bearing components, announced on the 7th that it will issue private convertible bonds (CBs) totaling 17 billion won. Of the funds raised, 13.5 billion won will be used for facility investments, while 3.5 billion won will be used to improve the company’s financial structure, including the repayment of bonds and loans.
These CBs have a 5-year maturity with both a coupon rate and maturity interest rate of 0%, and the conversion price is set at a 25% premium to the reference price. Despite favorable terms—including the exclusion of a refixing clause—the company raised 17 billion won, exceeding its target of 15 billion won, confirming strong investor interest. This is interpreted as reflecting expectations regarding NBR Motion Co., Ltd.’s growth potential and prospects for future business expansion. Conversion requests will be possible one year after issuance, and the offering also includes a call option covering up to 50% of the issued amount.
Funds raised for capital expenditures will be allocated to expanding production capacity in existing businesses and entering new markets. To accommodate increased exports to the U.S., the company will expand production facilities for steel balls and tapered rollers, and will proceed with the relocation of its Miryang facilities to Changwon and their automation. For new ventures, the company plans to establish production lines for CRB rollers and G3 ultra-precision and ceramic bearings to broaden its application markets to include humanoid robots, semiconductors, aerospace, and medical devices.
Meanwhile, a portion of the raised funds will be used to improve the company’s financial structure, including the repayment of high-interest corporate bonds and loans. The company plans to reduce interest expenses by repaying existing high-interest financial liabilities and secure the financial flexibility needed for future capital expenditures and the expansion of new businesses.
A company official stated, “Through this convertible bond issuance, we plan to expand production capacity in our core businesses and begin full-scale entry into high-value-added new businesses, such as G3 ultra-precision ceramic bearings,” adding, “By repaying high-interest loans, we will also reduce our financial burden and strengthen the foundation for both revenue growth and improved profitability.”