Keyeast Co.,Ltd. (KOSDAQ:A054780) announced a private placement of episode 1 bearer free, no warranty non-separable private equity rights bonds for proceeds of KRW 3,000,000,000 and episode 3 bearer interest-free non-guaranteed private convertible bonds for proceeds of KRW 12,000,000,000, for aggregate proceeds of KRW 15,000,000,000 on November 18, 2019. The transaction will involve sole participation from existing investor SM Entertainment Co., Ltd. (KOSDAQ:A041510) for episode 1 bonds and Core Trend Investment Ltd. for KRW 2,500,000,000, History Investment Co., Ltd. for KRW 3,000,000,000 among other investors. The bonds will be issued at its par value.

The bonds will mature on November 22, 2022 with lump-sum redemption of principal on maturity date for the bonds, and yield to maturity of 0%. The bonds are redeemable. The bonds will be convertible into common shares of the company at a rate of 100% and at a fixed conversion price of KRW 2,841 per share.

The conversion period starts from September 21, 2016 to August 20, 2018 for episode 1 bonds and from November 20, 2020 to October 20, 022 for episode 3 bonds. The subscription date and payment date for the transaction are November 20, 2019. The transaction has been approved by the board of directors of the company.