Sajodongaone Co.,Ltd. (KOSE:A008040) announced a private placement of ninth series unregistered unsecured unguaranteed private convertible bonds for gross proceeds of KRW 60,000,000,000 on February 23, 2016. The bonds will be issued at its par value. The bonds will mature on February 26, 2021.

The transaction will include participation from existing investor, Korea Dongah Flour Mills Co. Ltd. and Joo, Jin-Woo for KRW 40,000,000,000 and KRW 20,000,000,000 respectively. The bonds carry a fixed annual coupon of 4% and a yield to maturity of 5.5%.

The bonds carry lump-sum redemption of principal on maturity date. The bonds are fully convertible into common shares of the company at a fixed conversion price of KRW 2,054 per share. The conversion period of the bonds will be from February 26, 2017 to January 26, 2021.

The payment date for the bonds is expected on February 26, 2016. The transaction was approved by the board of directors of the company.