KOSDAQ-listed Soosung Webtoon is moving to stabilize its financial structure by sorting out a large volume of outstanding convertible bonds (CB).
Soosung Webtoon said on the 11th that it reduced the remaining balance of convertible bonds from 65.8 billion won at the start of 2024 to 10.2 billion won on an external investor basis through purchases and cancellations and conversions into common stock.
In June 2024, Soosung Webtoon bought 15 billion won of the 21st tranche of convertible bonds and resold them to the largest shareholder, Toomics Holdings. The entire 21st tranche acquired by Toomics Holdings was converted into common stock.
In October of the same year, it also reduced the size of the convertible bonds by purchasing and canceling 2 billion won of the 21st tranche and 2 billion won of the 25th tranche, respectively. In December, it purchased and canceled 2.08 billion won of the 22nd tranche, additionally canceled 3 billion won of the 21st tranche in the same month, and purchased and canceled 3.12 billion won of the 22nd tranche, continuing the cleanup of convertible bonds.
Toomics Holdings also converted 6 billion won of the 24th tranche of convertible bonds it held at the time into common stock. The conversion price was 8,950 won per share, higher than the stock price at the time (about 5,080 won).
The company said, "Toomics Holdings decided to convert to common stock to strengthen financial soundness as part of responsible management."
The cleanup of convertible bonds continued last year as well. Soosung Webtoon purchased and canceled 1.8 billion won of the 19th tranche in January last year and purchased and canceled 2.1 billion won of the 23rd tranche in July. In December, it additionally purchased and canceled 5 billion won of the 21st tranche held by Baro Savings Bank.
The CBs that Soosung Webtoon has recently sorted out through purchases, cancellations, and conversions into common stock total about 40.6 billion won.
Of the remaining convertible bonds, about 8 billion won of the 24th and 25th tranches are held by affiliates including Toomics and Terapin, and the last remaining external investor holding is 10.2 billion won of the 23rd tranche.
A Soosung Webtoon representative said, "In the past, the size of the convertible bonds was considerable, but most have been sorted out since 2024 through purchases, cancellations, and conversions," adding, "We plan to seek to resolve the remaining external convertible bonds within this year."