SK Hynix to Redeem Remaining Exchangeable Bonds Early, Cutting Debt by 133 Billion Won

SK Hynix said in a regulatory filing on 28일 that it will exercise a cleanup call to redeem the remaining portion of foreign-currency exchangeable bonds it issued overseas in 2023.

The face value of the bonds to be repurchased is about 132.7 billion won, representing 5.9% of the total issuance of about 2.2377 trillion won.

A cleanup call allows an issuer to redeem bonds early and end the creditor-debtor relationship once the outstanding balance falls to 10% or less.

Investors can choose to exchange their bonds for shares or receive cash repayment. Given that the current share price is far above the exchange price, investors are widely expected to opt for share exchanges.

With the remaining unredeemed exchangeable bonds set to be fully retired, the company expects its accounting debt to fall by about 133 billion won, which is also expected to lower its borrowing ratio.