Hahn & Co. to complete recap of Ssangyong Cement The buyout firm increased its borrowing by approximately 300 billion won
Translated by Kim So-in 공개 2020-05-01 08:00:38
이 기사는 2020년 05월 01일 08:00 thebell 에 표출된 기사입니다.
South Korea’s private equity (PE) firm Hahn & Company’s third recapitalization worth 1.6 trillion won on its portfolio company Ssangyong Cement Industry is approaching the finish line. The sell-down process is likely to be completed next month.Mirae Asset Daewoo acted as a lead arranger of the latest recapitalization while Woori Bank, Nonghyup Bank and Korea Investment & Securities acted as joint arrangers of the deal, sources familiar with the matter said on April 27.
The buyout firm increased the amount of its borrowing by approximately 300 billion won through the latest recapitalization compared to its second round of recapitalization where the firm secured 1.3 trillion won. The third capitalization consists of a 1.22 trillion won senior debt, a 280 billion won mezzanine debt and a 100 billion won revolving credit facility.
“The third recapitalization of Ssangyong Cement was around 120 percent overbooked,” said a source familiar with the matter. The source added the sell-down of the remaining amount is likely to be carried out at the end of May.
Market observers view it is meaningful in that the recapitalization has been successfully done despite lackluster investor sentiment due to the coronavirus outbreak. Shares of South Korea’s listed companies have swung wildly fueled by concerns over global economic crisis. Stocks of Ssangyong Cement also dropped to 3000 won in mid-March but regained ground later. Mirae Asset Daewoo also reportedly played a vital role in the deal as the lead arranger.
Most of all, the successful execution of the third recapitalization is attributable to Ssangyong Cement’s ability to generate stable cash flow, market observers said. The company recorded EBITDA of around 392.4 billion won and an operating profit of 228.4 billion won in 2019. The company has shown stable financial performance ever since Hahn & Co. acquired the company in 2016. Ssangyong Cement has a rating of A- with a positive outlook by all three domestic credit ratings agencies.
Hahn & Co. financed 780 billion won through acquisition financing when taking over Ssangyong Cement in April 2016. In January 2018, the buyout firm secured around 1.05 trillion won in the first recapitalization on the cement manufacturer. In February 2019, the buyout firm secured 1.3 trillion won in the second refinancing on the company. The interest rate for the third recapitalization is likely to be set at a four percent level.
(By reporter Kim Byung-yoon)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감