(Lotte Tour Development)

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Lotte Tour Development Co. said Monday it will extend by one year the maturity of its 70 billion-won ($49 million) convertible bond issued to domestic investors, from Nov. 29 this year to Nov. 29 next year.

The bond’s coupon rate remains unchanged at zero percent, but the yield to maturity will rise from 4.5 percent to 4.7 percent, with the early redemption date reset to Aug. 29, 2026.

The company said the extension reflects investors’ expectations for further share-price gains and gives them a chance to capture additional returns. At the same time, it helps Lotte Tour reduce potential selling pressure from share conversions and enhance shareholder value.

Last month, the company fully repaid a $60 million convertible bond issued to overseas investors and its $25.5 million accrued interest, a total of 120 billion won, using cash on hand.

Since the Jeju Dream Tower Resort project began in 2013, Lotte Tour has either redeemed or converted 78 percent of its aggregate 3.37 trillion won in convertible bonds. Only two issues remain: the newly extended 8th CB worth 70 billion won and the 10th CB worth 5.5 billion won maturing in August 2027. All remaining bonds are expected to be redeemed sequentially from next year onward.

The successful repayments and extensions stem largely from the strong performance of its Jeju Dream Tower complex. The casino division set record net revenue of 84.5 billion won in the first quarter and continued to grow to 110 billion won in Q2 and 139.3 billion won in Q3. The hotel unit also saw steady growth, with revenue of 31.7 billion won in Q1, 41.1 billion won in Q2, and 46.2 billion won in Q3.

Backed by this momentum, Lotte Tour swung to an operating profit in the first quarter and posted its first net profit from the second quarter of this year. Combined casino and hotel sales in Q3 reached 185.5 billion won, up 22.8 percent from 151.1 billion won in Q2, further boosting expectations for its third-quarter earnings.