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Press Release
SK Telecom Issues Overseas Convertible Notes on Favorable Terms of 1.75% Coupon Rate
2009.03.20 PrintIssues $330 million in five-year convertible notes on favorable terms: with a coupon rate of 1.75% and a 23% premium
Becomes the first in Asia and Europe to issue overseas convertible notes in 2009, thanks to its high credit rating and stock value
Expected to contribute to improving Korea’s international credit standing while creating a favorable condition for Korean companies in raising capital overseas
Seoul, Korea, 20 March, 2009 – SK Telecom (NYSE:SKM, CEO & President Man-Won Jung) announced that it successfully issued $330 million of convertible notes exchangeable into treasury shares.
The issuance carries a significant meaning as SK Telecom becomes the first overseas convertible notes issuer of year 2009 in both Asia and Europe despite global financial crisis and economic downturn.
The notes were issued on favorable terms - with a coupon rate of 1.75% and a 23% premium - and are thereby expected to serve as a positive benchmark for other Korean companies in raising capital overseas and contribute to improving Korea’s national credit standing.
The results of notes issuance reflect strong confidence of international investors in SK Telecom’s high credit rating, solid fundamentals and cash generation capability as it holds dominant status in Korean mobile telecommunications market.
The issuance is aimed at redeeming existing convertible notes that were issued in May 2004 (to mature in May 2009).