Issuance of Zero Coupon Convertible Bonds due 2018
PARK24 Co., Ltd. (the “Company”) hereby notifies the issuance of Zero Coupon Convertible Bonds due 2018 (bonds with stock acquisition rights, tenkanshasaigata shinkabu yoyakuken-tsuki shasai, hereinafter referred to as the “Bonds”) in the maximum issue amount of JPY 20 billion pursuant to a resolution of a meeting of the Board of Directors held on April 10, 2013. Approval in-principle has been received for the listing of the Bonds on the Singapore Exchange Securities Trading Limited.
Background of the Issuance of the Bonds
The Company aims to help achieve a comfortable motoring society with harmony among people, cars, and communities. In order to secure funding for the investment in growing business areas including parking business and mobility business while maintaining firm financial ground, the Company decided to issue the Bonds.
Use of Proceeds
The net proceeds from the issue of the Bonds are estimated to be approximately ¥20 billion after deducting expenses. The Company intends to apply the net proceeds as follows: (a) approximately ¥12 billion towards capital expenditure in the mobility business segment to purchase new vehicles and in-vehicle devices; (b) approximately ¥5 billion towards capital investment in the parking business segment including with respect to the development of new parking facilities and (c) the remainder towards refinancing of existing bank loans, in each case, by October 2014.
Note: This announcement is intended as general information regarding the issuance of convertible bonds by PARK24 Co., Ltd.. This announcement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for the Bonds or the Shares in any jurisdiction in which such offer or solicitation is unlawful. In particular, the Bonds and the Shares issuable upon exercise of, or upon acquisition by the Company of, the Stock Acquisition Rights (together, the "Securities") have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and, subject to certain exceptions, may not be offered or sold within the United States or to, or for the account of, U.S. persons (as defined in Regulation S of the Securities Act ("Regulation S")). The Securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.