CB Call Option Recipient Correction

Financial Impact

NEUTRAL

Key Numbers

• • Call Option Acquisition Scale: Max 1,000,000,000 KRW (50% of issuance amount)
• • Max Shares from Call Option: 766,283 Shares (after refixing to 70%)
• • Max Equity Stake from Call Option: 1.33% (after refixing to 70%)
• • Put Option Early Redemption Rate: 100.00%
• • Put Option Yield to Put (YTP): 7.0% (annual compound, 3-month basis)
• • Call Option Purchase Price: 102.0% (1st-2nd redemption), 103.0% (3rd-10th redemption)
• • Call Option Acquisition Fee: 20,000,000 KRW (1st-2nd), 30,000,000 KRW (3rd-10th)
• • Collateral for CB: 2,000,000,000 KRW (120% of principal) on real estate, pledge on 789,965 Blue Industry Development common shares

AI Analysis Summary

DAIYANG METAL CO.,LTD. filed an amendment to its Convertible Bond (CB) issuance, clarifying the Call Option recipient. The Call Option allows the issuer to acquire up to 1,000,000,000 KRW (50% of the issuance) of the CBs, potentially converting into a maximum of 766,283 shares, representing up to 1.33% of the company's equity. The Put Option allows bondholders to request early redemption at 100% of the principal with a 7.0% YTP. The company will pay a Call Option acquisition fee of 20M-30M KRW. The CBs are secured by real estate (2,000,000,000 KRW collateral) and a pledge on 789,965 Blue Industry Development common shares. The amendment primarily clarifies the Call Option beneficiary, which was previously stated as 'the issuer or a third party designated by the issuer' and is now solely 'the issuer'. This change reduces the potential for a designated third party to gain an equity stake, which could be seen as slightly positive for existing shareholders by limiting external influence, but the overall financial impact remains largely neutral as the core terms of the CB issuance are unchanged.

How This Event Is Evaluated