Sapphire Technology Co., Ltd. (KOSDAQ:A123260) announced a private placement of sixth unregistered unsecured unguaranteed private convertible bonds for gross proceeds of KRW 5,000,000,000 and seventh registered unguaranteed domestic private convertible bonds for gross proceeds of KRW 20,000,000,000; for aggregate gross proceeds of KRW 25,000,000,000 on August 19, 2015. The sixth unregistered unsecured private convertible bonds carry a yield to maturity of 1%, annual fixed coupon of 1%, and will mature on August 20, 2020; with lump-sum redemption of principal on maturity date for the bonds. The bonds can be converted into common shares of the company at a fixed conversion price of KRW 18,386 per share and a conversion period from August 20, 2016 to July 20, 2020.

The seventh unregistered unsecured unguaranteed private convertible bonds carry a yield to maturity of 2%, annual fixed coupon of 2%, and will mature on August 26, 2045; with lump-sum redemption of principal on maturity date for the bonds. The sixth and seventh unregistered unsecured unguaranteed private convertible bonds will be issued at par. The bonds can be converted into common shares of the company at a fixed conversion price of KRW 16,547 per share and a conversion period from August 26, 2016 to July 26, 2045.

The transaction will include participation from new investors, KTC-NP-Growth Champ 2011-2 PEF for seventh series bonds and from Hyundai Season I Mezzanine Private Security Investment Trust, a fund managed by Hyundai Asset Management Co. Ltd for the series six bonds. The transaction has been approved by the board of directors of the company.

The payment date for the sixth series shares is August 20, 2015.