Chungho ComNet Co. Ltd. (KOSE:A012600) announced a private placement of series 7 unregistered unsecured bonds with warrants and series 8 unregistered coupon unsecured private convertible debentures for gross proceeds of KRW 7000,000,000 on January 14, 2013. Series 7 bonds will be issued for KRW 4,500,000,000, will carry zero coupon rate, yield to maturity of 6% and will be convertible into equity shares at conversion price of KRW 6,855 per share maturing on January 16, 2018. The warrants issued along with the series 7 bonds will have an exercise period from January 16, 2014 to December 15, 2017 and will be exercised for KRW 6,855 per share. The series 8 convertible debentures will be issued for KRW 2,500,000,000, will carry a coupon rate of 2%, yield to maturity of 6%, and will be convertible into equity shares at conversion price of KRW 6,855 per share maturing on January 16, 2018. The conversion period of series 8 convertible debentures will start on January 16, 2014 and end on December 15, 2017. New investors, DaeSung Industrial Gases.Co.,Ltd. will subscribe for KRW 500,000,000 and Benchmark Holdings Inc. and GTI Management., ltd. will subscribe for KRW 1,000,000,000 each. The transaction is expected to close by January 16, 2013. The debentures have prohibition of exercise and induced split for one year due to private placement issuance.

On January 15, 2012, the company amended the transaction. The company will now issue series 8 convertible debentures for KRW 1,500,000,000. DaeSung Industrial Gases.Co.,Ltd. will subscribe for KRW 500,000,000 and Benchmark Holdings Inc. will subscribe for KRW 1,000,000,000. GTI Management., ltd. will not subscribe to series 8 convertible debentures. The company will raise in total KRW 6,000,000,000 in the transaction.