What is change of control conversion price??

CFA Level II
#1

This is driving me mad. What is it, and how does it impact convertible bond pricing?

Busan Fund Case Scenario

The Busan Fund, based in South Korea, invests in Asian corporate bonds, including convertible bonds.

_One of the convertible bonds in the fund was issued on 15 June 2015 by Soyang, Ltd., an electronics manufacturer, when Soyang’s common stock was selling for KRW3,245 per share. Each bond has a par value of KRW1,000,000. The initial conversion price was KRW4,500. The bonds have a threshold dividend of KRW300 and a change of control conversion price of KRW3,500. _

#2

OK, I found sg. which helps:

Change of control premium is the price at which the bondholder can convert the bond if the firm is merged with or acquired by another firm and is unaffected by a cash dividend to shareholders.

So I understand that if the company gets merged, the bondholders will get 1,000,000/3500 shares if they decide to convert their bonds into equity. Or do they pay the 3500 on top of 4500? If not, what is the intuition for why they now get more stocks?