Kakao talks $300 million three-year convertible bonds with fixed coupon of 0%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., Oct. 21 – Kakao Corp. plans to price $300 million three-year convertible bonds on Wednesday at par with price talk for a fixed coupon of 0% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are joint global coordinators and bookrunners for the Regulation S offering.

The bonds are non-callable until April 28, 2022 and then subject to a 130% hurdle.

The convertibles are putable upon a change-of-control or delisting event. There is dividend protection.

Proceeds will be used for general corporate purposes.

Kakao is a Seoul-based internet portal services company.

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