JOYWORKS&Co Decides Issuance of 10.5 Billion Won 4th Convertible Bond for Refinancing Existing CB

JOYWORKS&Co decided on July 10, 2026 to issue 10.5 billion won worth of 4th unregistered unsecured private convertible bonds through board resolution.
The conversion price is set at 965 won, 3.5% above the current stock price of 932 won, but the number of convertible shares amounts to 10,880,829, representing a maximum dilution of 56.51% of outstanding shares.
All proceeds will be used to refinance the existing 3rd convertible bond of 12 billion won, with a 3-year maturity, coupon rate of 2.0%, and yield to maturity of 6.0%.
Bondholders can exercise a put option after one year from issuance, and the issuer also has a call option starting from the same date.
Collateral is provided in the form of a real estate trust priority beneficiary interest on 37 commercial and officetel units in Suwon, Gyeonggi Province.
The subscribers are Sangsangin Securities, Sangsangin Savings Bank, and Sangsangin Plus Savings Bank, with a private placement restricting conversion and split for one year.
[AI Summary]JOYWORKS&Co's decision to issue a large convertible bond for refinancing has maximized dilution risk for existing shareholders. With convertible shares exceeding half of outstanding shares, massive supply is inevitable upon stock price appreciation, likely negatively impacting short-term stock price.