Korean Air Completes 400 Billion Won Bond Issuance for Debt Repayment No Equity Dilution
Korean Air issued a total of 400 billion won in unsecured bonds consisting of series 118-1 at 205 billion won and series 118-2 at 195 billion won with an A credit rating.
All proceeds will be used to repay approximately 230 million dollars or about 340.3 billion won in aircraft lease obligations with the remaining amount covering issuance costs.
This debt refinancing improves the company's financial structure and causes no dilution to existing shareholders. Underwriters include Daishin Securities Hanwha Investment Securities Eugene Securities LS Securities and Korea Development Bank among others.
Korean Air plans to deposit the funds in high-grade financial products until the repayment date to ensure capital preservation.
[AI Summary]Korean Air raises 400 billion won through bond issuance to prepay aircraft lease obligations. The move enhances debt maturity profile and financial stability with a neutral impact on stock price.