SK Rent-a-Car Jeju branch (photo = SK Rent-a-Car homepage)

 

[Alpha Biz= Reporter Kim Sangjin] SK Networks recently confirmed the issuance of private bonds, raising 1.5 trillion won in funds.

According to investment banking sources on the 22nd, SK Networks recently issued private bonds worth 1.5 trillion won, with NongHyup Bank as the lead manager. The bonds are expected to mature by December this year, coinciding with the anticipated completion of the SK Rent-A-Car stake sale transaction. The funds raised will be utilized for purposes such as repayment of maturing debts. NongHyup Bank acquired the SK Networks private bonds through a special purpose company (SPC) it established. Subsequently, SK Networks secured loan funds by issuing 1.52 trillion won in asset-backed securities (ABS), with the principal repayment from the issued private bonds serving as collateral.

SK Networks, which typically raised funds through public corporate bonds, opted for private bonds due to uncertainties surrounding the SK Rent-A-Car sale. In April, SK Networks selected Affinity Equity Partners, a private equity fund (PEF) manager, as the preferred negotiator for the sale of SK Rent-A-Car's management rights and signed a memorandum of understanding (MOU) for stock transactions. The sale entails a 100% stake in SK Rent-A-Car, with an estimated transaction value of 8 trillion won. Affinity Equity Partners is expected to finalize the deal through due diligence and final price negotiations before signing a stock purchase agreement (SPA) with SK Rent-A-Car.

For SK Networks, as well as the potential sale of SK Rent-A-Car, the creditworthiness could change depending on the outcome of this M&A. Therefore, until the decision regarding the sale of the SK Rent-A-Car stake is finalized, SK Networks is anticipated to resort to private bonds or loans instead of public bonds to raise necessary funds.

 

 

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