LG Display Co., Ltd. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K, dated July 31, 2019, reports a resolution by the Board of Directors of LG Display Co., Ltd. regarding the issuance of convertible bonds. The filing details a private placement of foreign currency-denominated securities intended for general corporate purposes.
Key Financial Metrics and Transaction Details
| Metric | Value |
|---|---|
| Aggregate Principal Amount (USD) | $687,800,000 |
| Aggregate Face Value (KRW) | 813,426,670,000 |
| Exchange Rate (USD/KRW) | 1,182.65 |
| Interest Rate | 1.50% (payable semi-annually) |
| Maturity Date | August 22, 2024 |
| Conversion Price (KRW) | 19,845 |
| Shares Underlying Bonds | 40,988,998 |
| Dilution Ratio | 10.28% of total issued shares |
| Listing Venue | Singapore Exchange Securities Trading Limited |
Material Changes and Transaction Structure
The filing does not report operational financial results (revenue, profit, or cash flow) for the period. The material event is the authorization of a new debt instrument with equity conversion features. Key structural elements include:
- Use of Proceeds: General corporate purposes, specifically including a working capital reserve for unanticipated external uncertainties.
- Conversion Premium: The conversion price represents a 22.136% premium over the base price and a 26.0% premium over the closing price on the pricing date.
- Conversion Period: August 23, 2020, to August 12, 2024.
- Issuance Method: Private placement pursuant to Regulation S, exempt from registration with the Financial Services Commission.
Guidance, Risks, and Contingencies
The filing outlines specific rights and risks associated with the bond issuance:
- Call Option (Company): The company may redeem the bonds early if the share closing price exceeds 130% of the conversion price for 20 out of 30 consecutive trading days after three years, or if outstanding bonds fall below 10% of the initial issuance.
- Put Option (Bondholders): Bondholders may exercise a put option three years from the issue date, or in the event of delisting, trading suspension for 30 business days, or a Change of Control.
- Restrictions: Korean residents are prohibited from acquiring these bonds for one year from the issuance date.
- Adjustments: The conversion price is subject to adjustment for dilutive events such as stock splits, dividends, rights issues, or capital distributions.
Investor Verification Checklist
- Verify the final closing of the $687.8 million bond issuance and the actual proceeds received.
- Monitor the company's share price relative to the 19,845 KRW conversion price to assess conversion likelihood.
- Review the impact of the 10.28% potential dilution on existing shareholders' equity.
- Confirm the listing status on the Singapore Exchange and trading liquidity of the bonds.
- Assess the company's working capital needs and whether the "unanticipated external uncertainties" cited as a use of proceeds materialize.