이 기사는 2020년 02월 26일 08:00 thebell 에 표출된 기사입니다.

South Korea’s buyout firm Hahn & Company will recapitalize its portfolio company Ssangyong Cement Industry one year after its second recapitalization.

According to industry sources on February 21, Hahn & Co. has decided to recapitalize Ssangyong Cement and is discussing the details of the deal including its structure and size. Mirae Asset Daewoo will act as a lead arranger while Woori Bank will act as a joint arranger of the deal.

The buyout firm is planning to secure 1.5 trillion won in the third recapitalization on the cement manufacturer, adding 200 billion won to its existing acquisition financing of 1.3 trillion won. The firm is discussing the possibility to set the interest rate at four percent level. Existing lenders will participate in the third recapitalization deal unless unexpected happens.

What is notable is that the buyout firm has recapitalized the cement company almost every year. Hahn & Co. acquired a 46.14 percent stake in Ssanyong Cement in April 2016 for 883.7 billion won. After that, the buyout firm paid around 1.4 trillion won to increase its stake to 79.5 percent, in which the firm used acquisition financing worth 780 billion won. The acquisition financing was jointly arranged by NH Investment & Securities, Hana Bank and Hyundai Securities.

In January 2018, the buyout firm secured 1.05 trillion won in the first recapitalization on the cement manufacturer, arranged by Mirae Asset Daewoo and Woori Bank, both of which initially provided about 1.3 trillion won of a credit facility for the recapitalization of the company in February 2019.

The buyout firm has paid out dividend every quarter since the acquisition. Domestic credit ratings agencies expect the cement manufacturer to maintain its financial stability thanks to the stable cash generation. Ssangyong Cement has ratings of A- by all three domestic credit ratings agencies with positive outlook.

(By reporters Kim Byung-yoon and Han Hee-yeon)