Hana Financial Group makes big bet on H-Line Shipping Company plays a significant role in recapitalization of Hahn & Co.’s H-Line Shipping
Translated by Ryu Ho-joung 공개 2020-05-26 08:00:19
이 기사는 2020년 05월 26일 08:00 thebell 에 표출된 기사입니다.
South Korea’s Hana Financial Group has made a major bet on private equity firm Hahn & Co.’s H-Line Shipping.Hahn & Co. is returning money and making interest distributions to existing investors in its H-Line Shipping to replace them with new limited partners, sources said on May 22. The Seoul-headquartered firm will form a new special purpose vehicle (SPV) which will reacquire 100 percent of H-Line Shipping.
The SPV will be created with equity contribution of approximately 1 trillion won ($804 million) and senior loans worth 750 billion won. The amount of loans increased by 170 billion won compared with the predecessor which carried 580 billion won in senior and mezzanine loans.
Hana Financial Group‘s subsidiary Hana Bank has led the 750 billion won loan financing. While NH Investment & Securities – Hahn & Co.’s longstanding partner – has provided part of the debt, Hana Bank has reportedly arranged most of the amount.
It was almost a year ago that Hahn & Co. started working on raising capital to replace investors in H-Line Shipping. Amid a tough fundraising environment Hana Financial Group’s partnership with Hahn & Co. appears to be a win-win for both parties as Hana Financial Group is seeking to strengthen its investment business, industry watchers said.
Significantly, Hana Financial Investment, another subsidiary of Hana Financial Group, has decided to underwrite 300 billion won of the SPV’s total equity contribution of 1 trillion won. Hana Bank has signed a letter of commitment to invest 100 billion won in Hana Financial Investment’s fund.
Hana Financial Group has cited H-Line Shipping’s ability to generate cash flow as a reason for its decision. But some market watchers are raising their eyebrows as having a significant exposure to one company could be risky for Hana Financial Group, especially considering that it is expected to raise capital mostly from its affiliates.
According to Industry watchers, H-Line Shipping’s financial performance and credit worthiness are reliable. “Long-term contracts with high-quality shippers will likely support H-Line Shipping’s financial performance,” a source said.
H-Line Shipping’s revenue declined 1 percent year-on-year to 719 billion won in 2019. But earnings before interest, taxation, depreciation and amortization (EBITDA), a metric often used as a proxy for cash flow, increased 14.7 percent to 303.7 billion in the same period.
With this recapitalization, H-Line Shipping saw its debt grow, leading to the rise in a net debt to EBITDA ratio from the range of five to six times to 7.65 times.
(Reporting by Hye-ran Kim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 나이스평가정보, '아인스미디어·웰컴즈' 인수
- 폴라리스오피스 자회사, 엔비디아 '인셉션 프로그램' 합류
- 소룩스, 美 Mount Sinai 의대와 ‘인지건강 특수조명 공동개발’ 계약
- 세경하이테크, 자회사 세스맷 친환경 확장 '순항'
- [Red & Blue]지오릿에너지, CB 주식전환 물량 출회 부담
- 다보링크, 해외시장 공략·신사업 추진 본격화
- [Red & Blue]포스코 손잡은 '협동로봇' 뉴로메카, 반등 '언제쯤'
- [이사회 모니터]황원경 본부장, 상상인증권 사내이사 합류
- 맥시칸, '지사 역할' 하림유통 합병 '효율성 제고'
- [아난티는 지금]얽히고설킨 지배구조, ESG 'D등급 딱지'