By Abigail W. Adams
Portland, Me., July 11 – LG Chem Ltd. priced a $2 billion two-tranche offering of notes (A3) exchangeable for LG Energy Solution Ltd. shares on Tuesday, according to a company circular.
The deal included a $1 billion tranche of five-year exchangeable notes that priced at par to yield 1.25% with an initial exchange premium of 25%.
Price talk was for a coupon of 0.75% to 1.25% and an initial exchange premium of 25% to 35%.
The deal also included a $1 billion tranche of seven-year exchangeable notes, which priced at par to yield 1.85% with an initial exchange premium of 30%.
Price talk was for a coupon of 1.35% to 1.85% and an initial exchange premium of 25% to 35%.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and HSBC are bookrunners for the Regulation S offering.
The notes are exchangeable at a fixed rate of US$1 to KRW 1,295.
The five-year tranche is putable on July 18, 2025, and the seven-year tranche is putable on July 18, 2027.
The notes are also putable upon a delisting or change-of-control event.
The five-year tranche is non-callable for three years and then subject to a 130% hurdle.
The seven-year tranche is non-callable for five years and then subject to a 130% hurdle.
The notes are also subject to a clean-up call or become callable upon a tax event.
Proceeds will be used to finance the company’s investment facility and for general corporate purposes.
LG Chem is a Seoul, South Korea-based chemical company, and subsidiary LG Energy is a battery company.
| Issuer: | LG Chem Ltd.
|
| Exchange entity: | LG Energy Solution Ltd.
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| Issue: | Exchangeable notes
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and HSBC
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| Pricing date: | July 11
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| Settlement date: | July 18
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| Rating: | Moody’s: A3
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| Distribution: | Regulation S
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| Stock symbol: | KRX: 373220
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| Stock price: | KRW 550,000
|
| Market capitalization: | KRW 128.7 trillion
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| 2028 notes
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| Amount: | $1 billion
|
| Maturity: | July 18, 2028
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| Coupon: | 1.25%
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| Price: | Par
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| Yield: | 1.25%
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| Exchange premium: | 25%
|
| Exchange price: | KRW 687,500
|
| Call options: | Non-callable for three years and then subject to a 130% hurdle
|
| Put options: | July 18, 2025
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| Talk: | Coupon of 0.75% to 1.25% and initial exchange premium of 25% to 35%
|
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| 2030 notes
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| Amount: | $1 billion
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| Maturity: | July 18, 2030
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| Coupon: | 1.85%
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| Price: | Par
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| Yield: | 1.85%
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| Exchange premium: | 30%
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| Exchange price: | KRW 715,000
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| Call options: | Non-callable for five-years and then subject to a 130% hurdle
|
| Put options: | July 18, 2027
|
| Talk: | Coupon of 1.35% to 1.85% and initial exchange premium of 25% to 35%
|
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