#South Korea #Seoul #Debt Management #Notes Due 2028 #POSCO

POSCO Initiates Cash Offer for Notes Due 2028

On June 30, 2026, POSCO, a renowned company based in South Korea, announced the commencement of a significant cash offer aimed at purchasing outstanding notes totaling up to $400 million. This initiative specifically targets its 5.750% Notes due in 2028, reflecting the corporation's active approach to managing its financial strategy and debt obligations more effectively.

Details of the Offer

The offer represents a crucial step in POSCO's financial management, allowing the company to streamline its debt portfolio. By purchasing these notes, POSCO aims not only to reduce its liabilities but also to optimize its interest payment obligations. The decision to buy back these notes aligns with the company's overall goal to maintain financial stability and flexibility in an ever-evolving market.

The offer is made available to noteholders through a formal Offer to Purchase dated June 30, 2026, meticulously outlining the terms and conditions under which the notes may be tendered. The maximum acceptance amount, set at $400 million, may be adjusted depending on market response and strategic considerations.

Offer Specifications

Notes Description

• - CUSIP/ISIN: CUSIP 73730EAD5 (144A) / Y7S272AG7 (Reg S)
• - Principal Amount Outstanding: $1 billion
• - Fixed Spread (basis points): 30
• - Early Tender Premium: $50 for each $1,000 principal amount

Indicative Timetable

The management of POSCO has released an indicative timetable showing key deadlines for the offer:

• - Commencement of the Offer: June 30, 2026
• - Withdrawal Deadline: July 14, 2026, at 5:00 PM NYC time, allowing noteholders to revoke their tender instructions.
• - Early Tender Deadline: July 14, 2026, at 5:00 PM NYC time, marking the cut-off for those wishing to qualify for the early tender offer consideration.
• - Price Determination Date: July 15, 2026
• - Expected Early Settlement Date: July 20, 2026
• - Final Settlement Date: Expected by July 31, 2026

POSCO emphasizes that all noteholders whose notes are accepted will also be eligible for accrued interest payments and that the calculations regarding the tender offer consideration will follow the specifics listed in the Offer to Purchase document.

Strategic Implications

This proactive move by POSCO is expected to have positive implications for its financial health, showcasing the company's commitment to maintaining control over its debt structure. By potentially reducing its debt load significantly, POSCO not only secures its current financial position but also prepares for future growth opportunities in a competitive landscape.

Noteholders are encouraged to stay informed and act promptly, as the deadlines for participation in this offer approach swiftly. The company has appointed J.P. Morgan Securities LLC and The Hongkong and Shanghai Banking Corporation Limited as dealer managers to facilitate this transaction, ensuring a smooth process for all stakeholders.

Conclusion

As POSCO embarks on this cash offer, the financial community is closely watching its implications for the company's market position and future strategies. With this bold initiative, POSCO is not just managing debt but actively shaping its financial narrative for the years ahead.