Lycom has decided to issue KRW 20 billion worth of private convertible bonds (CB) to expand its production capacity (CAPA) for optical components used in AI data centers and defense applications.

According to a regulatory filing on the 8th, Lycom decided to issue KRW 20 billion worth of '2nd Unsecured Private Convertible Bonds.' The raised funds will be fully used as facility funds and are scheduled to be paid in on July 16.

• *[Key Terms of the Convertible Bond (CB) Issuance]**
• Interest Rate: Both the coupon rate and maturity interest rate are 0%
• Maturity Date: July 16, 2031
• Conversion Price: KRW 5,788
• Conversion Request Period: July 16, 2027 – June 16, 2031
• Shares Upon Conversion: 3,455,425 common shares (11.29% of total issued shares as of the filing date)

The company plans to invest the entire KRW 20 billion in capital expenditure (CAPEX) from 2027 to 2028 to expand production capacity (CAPA) for optical amplifiers used in AI data centers and fiber lasers for defense applications.

Investor protection measures and options for the issuing company have also been established. Bondholders may request early redemption (Put Option) every three months starting January 16, 2029, which marks 30 months after issuance. Meanwhile, the company may exercise a call option on up to 40% of the total issuance amount between July 16, 2027, and January 16, 2029.

Meanwhile, the private convertible bonds will be underwritten by multiple private equity funds participating in a trustee capacity, including Shinhan Investment Securities, Samsung Securities, KB Securities, and NH Investment Securities.