The Sailor Pen Co., Ltd. (TSE:7992) announced private placement of 20,000,000 first subordinated unsecured convertible bonds at a price of ¥100 per bond for gross proceeds of ¥2,000,000,000 with existing investor PLUS Corporation on June 23, 2020. The company will also issue 20 units of stock acquisition rights. The bonds will be issued at par. The bonds are convertible into 15,037,593 shares at a fixed conversion price of ¥133 per share. The bonds does not bear any interest and will mature on July 13, 2027. The bonds are redeemable at par on maturity. The investor currently owns 14.36% stake in the company which will go up to 57.78%. The company will incur registration-related costs, lawyer fees, financial advisor fees, document preparation costs and other costs of ¥22,100,000 and will receive net proceeds of ¥1,977,900,000 in the transaction. The transaction is expected to close on July 13, 2020. The transaction has been approved by the board of directors of the company.