이 기사는 2021년 06월 29일 07시50분 thebell에 표출된 기사입니다

Centroid Investment Partners has finalized a deal structure of its acquisition of golf equipment company TaylorMade, with the firm planning to close the deal next month.

An amount of acquisition financing for the takeover of TaylorMade has significantly been increased from $700 million to $950 million, thanks to positive response from investors, industry sources said Friday. The increased amount will be used to repay TaylorMade’s debts worth $2.5 trillion.

The acquisition financing has been jointly arranged by Shinyoung Securities, KB Kookmin Bank, and Hana Financial Investment. It is known that they first proposed repaying TaylorMade's existing debt, with the acquisition finance quickly overbooked. The arrangers seem to have focused on the fact that the current lenders may enhance investment stability by securing enough collateral if existing borrowings are paid.

The acquisition financing will be comprised of two tranches, including a $725 million senior debt with a yield to maturity of 4.7% and a $225 million subordinated debt with a yield to maturity of 7.5%.

Mezzanine loan and equity are structured to consist of convertible preference shares (CPS) worth about $430 million and equity of $510 million, respectively.

TaylorMade recorded earnings before interest, taxes, depreciation, and amortization (EBITDA) of 135 billion won in the first quarter of this year, slightly exceeding the last year’s EBITDA of 127.5 billion. Market insiders estimate this year’s EBITDA to be between 170 billion won and 200 billion won.

The Korean Federation of Community Credit Cooperatives will invest 200 billion won in equity investments and 100 billion won in CPS as an anchor investor. Strategic investor The Nature Holdings will invest 100 billion won in equity investments.

Centroid Investment Partners plans to close the deal next month and start a post-merger integration process. (Reporting by Se-hun Jo)