Japan’s chatting app company, Line Corp., said it resolved at its meeting of the board of directors held on September 4, 2018 to issue Zero Coupon Convertible Bonds due 2023 and Zero Coupon Convertible Bonds due 2025.
Line said the bond will carry stock acquisition rights through an offering pursuant to Regulation S under the U.S. Securities Act of 1933, as amended.
The Company also announces that, concurrently with the Regulation S Offering, it resolved at its meeting of the board of directors held on September 4, 2018 to issue Zero Coupon Convertible Bonds due 2023 (the “2023 Allotment Bonds”) and Zero Coupon Convertible Bonds due 2025, being bonds with substantially the same terms and conditions as the Regulation S Bonds, to NAVER Corporation, the Company’s parent company, through a third-party allotment.
Background of the Issuance of the Regulation S Bonds and the Allotment Bonds The Company is a leading global platform for mobile messaging and communication services, content distribution and life and financial services.
As of June 30, 2018, the Company’s monthly active users in Japan were 76 million and its aggregate MAUs in its four key countries of Japan, Taiwan, Thailand and Indonesia were 164 million. The Company’s core business segment includes advertising products and services as well as communication and content products and services, which it has monetized in its key countries while also enabling advertisers to more effectively promote their brands and amplify their visibility and reach.
Through the strategic business segment, the Company has recently begun to invest in new ventures that it believes have the potential to contribute to its operating results over the medium- to long-term, particularly through its fintech businesses, including LINE Pay, as well as artificial intelligence and commerce-related businesses. The Company is pursuing new business opportunities, in many cases through collaboration with financial industry partners, in areas such as online securities brokerage, insurance sales, consumer loans and other financial services.
In addition, the Company has focused on developing and strengthening its capabilities in AI, and it plans to promote adoption of its AI platform called LINE Clova.
The Company plans to increase corporate value in the mid- to long-term by making significant investments in the promotion of its products and services, and the Company’s board of directors has accordingly resolved to issue the Bonds in order to procure the funds needed to pursue the above initiatives.