UNISON issues 32B KRW convertible bonds, diluting 11.5% equity... Conversion price at 1,071 won (7.4% premium to current) but subject to downward adjustment... Strategic investment from Thailand's B.Grimm Power
UNISON decided on May 29, 2026 to issue 32 billion KRW of 18th series unsecured private convertible bonds (CB). Payment date: June 8, 2026; maturity: June 8, 2028 (2-year). Coupon 0%, yield to maturity 12%.
Conversion price is 1,071 KRW per share, approximately 7.4% above the closing price of 997 KRW on the base date (May 28, 2026) – a premium issuance. However, the conversion price is subject to monthly reset (refixing) and can be lowered to a floor of 750 KRW if the stock price falls, increasing dilution risk.
The CB can be converted into approximately 29.88 million new shares, representing 11.51% of the current outstanding shares (259.5 million). When combined with existing convertible bonds and warrants, total potential dilution reaches 24.0%, significantly pressuring existing shareholder value.
Use of proceeds: 8 billion KRW for facility (vessel purchase for O&M), 10.1 billion KRW for operating expenses (services and operation), and 13.9 billion KRW for acquisition of securities of other corporations – target yet to be determined. The unspecified acquisition target adds investment uncertainty.
The bondholder is B.Grimm Power Korea Co., Ltd., a subsidiary of B.Grimm Power (Thailand), a financially solid company with total assets of 8.35 trillion KRW and sales of 2.4 trillion KRW. The strategic partnership potential is positive. However, the bondholder has a put option (early redemption) exercisable after 6 months, creating refinancing risk for UNISON.
UNISON also has a call option (after 12 months, with an additional 3% spread) to force conversion. The bonds are secured by a pledge on a reserve account (maximum amount 120% of redemption at maturity), providing creditor protection.
[AI Comprehensive Analysis]While this CB issuance secures immediate funding and attracts a strategic investor, the significant dilution of up to 11.51% (24% including existing convertibles), the potential downward conversion price adjustment, and the undefined acquisition target increase uncertainty and risk for existing shareholders. Investors should closely monitor stock price movements and future announcements regarding the use of funds.
KOSDAQ Filing Information
Filing: Report On Major Events (Decision On Issuance Of Convertible Bonds)