Elk Corporation announced that it expects to receive KRW 10 billion in funding from Susung Asset Management Co., Ltd., Korea Fixed-Income Investment Advisory, Hyundai Asset Management Co. Ltd..

Elk Corporation (KOSDAQ:A094190) announced a private placement of eighth unregistered/unsecured unguaranteed private convertible bonds for gross proceeds of KRW 10,000,000,000 on June 22, 2015. New investors Korea Fixed-Income Investment Advisory, Susung Asset Management Co., Ltd., and Hyundai Season I Mezzanine Private Security Investment Trust, a fund managed by Hyundai Asset Management Co. Ltd. each will invest KRW 3,000,000,000; KRW 2,000,000,000; and KRW 5,000,000,000 respectively.

The bonds will have a fixed coupon rate of 1% per annum and will have a yield to maturity of 2.9%. The bonds will be redeemable on its maturity which will be June 24, 2019. The bonds are 100% convertible in to common shares at a fixed conversion price of KRW 3,650 per share from June 24, 2016 to May 24, 2019.

The bonds will be issued at its par value. The board of directors approved the transaction. The payment and subscription date will be June 24, 2015.