New Issue: Kumho Tire prices KRW 158.18 billion 2% convertibles due 2014

By Devika Patel

Knoxville, Tenn., June 16 - Kumho Tire Co Inc. priced a KRW 158.18 billion private placement of 2% convertible bonds with a yield to maturity of 7%.

After one year, the bonds are convertible into common stock at KRW 5,000 per share; they mature Dec. 31, 2014. Investors may not sell the converted shares until Dec. 31, 2014.

Investors included Korea Development Bank, for KRW 82.72 billion; Woori Bank, for KRW 50.41 billion; Kookmin Bank, for KRW 10.24 billion; NH Bank, for KRW 7.91 billion; and Korea Exchange Bank, for KRW 6.9 billion.

Proceeds will be used for working capital.

Kumho Tire is a Seoul, South Korea-based maker of tires for passenger cars, SUVs, trucks and off-road vehicles.

Issuer:	Kumho Tire Co Inc.
Issue:	Convertible bonds
Amount:	KRW 158,181,000,000
Maturity:	Dec. 31, 2014
Coupon:	2%
Price:	Par
Yield:	7%
Conversion price:	KRW 5,000
Warrants:	No
Investors:	Korea Development Bank (for KRW 82.72 billion), Woori Bank (for KRW 50.41 billion), Kookmin Bank (for KRW 10.24 billion), NH Bank (for KRW 7.91 billion), and Korea Exchange Bank (for KRW 6.9 billion)
Pricing date:	June 16
Stock symbol:	Pink Sheets: KMHTY
Stock price:	$6.40 at close June 15

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