SK On is moving to acquire approximately 2 trillion won ($1.5 billion) in foreign debt to improve the financial structure of its U.S. subsidiary, SK Battery America (SKBA).
On September 29, SK On announced that it has decided to acquire the principal and interest obligations of foreign bonds issued by SKBA, totaling $1.5 billion (approximately 2.28 trillion won).
The acquisition includes $500 million in foreign bonds maturing in January 2027 and $1 billion in foreign bonds maturing in January 2029. The debt acquisition amount corresponds to 14.05% of SK On's consolidated equity as of the end of last year.
This debt acquisition is contingent upon obtaining the necessary approvals for a change of issuer at a bondholders' meeting scheduled for the end of next month. Once the bondholders consent and the transaction is finalized, SK On will directly assume the principal and interest obligations of the existing foreign bonds.
Additionally, SK On plans to treat the same amount as a loan to its subsidiary, effectively converting the existing foreign bond debt into a loan to SK On.
No actual loan disbursement will occur during this process. This move is seen as a restructuring of the debt obligations, allowing the parent company to take on the repayment responsibilities instead of the U.S. subsidiary.
An SK On official stated, "The purpose of converting SK Battery America's external capital market debt into SK On borrowings is to alleviate external financial burdens."
* This article has been translated by AI.
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