Air Busan Co., Ltd. (KOSE:A298690) announced a private placement of 3rd series non-guaranteed private permanent convertible bonds with bearer interest for gross proceeds of KRW 30,000,000,000 on March 23, 2021. The transaction will include participation from returning investor Asiana Airlines, Inc. (KOSE:A020560) .The bond carries a fixed coupon rate of 7.2% per annum, 7.2% yield to maturity and would mature on March 24, 2051. The bonds can be 100% converted into 7,660,878 common shares for 8.5% stake of the company at a fixed conversion price of KRW 3,916 per share.

The conversion period is from March 25, 2022 to February 24, 2051. The transaction is expected to close on March 24, 2021. The transaction has been approved by board of directors of the company.