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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] NH Investment & Securities recently offloaded approximately 580 billion KRW of acquisition financing it provided to private equity firm MBK Partners for several corporate acquisitions.
This includes loans related to MBK’s acquisitions of companies like Osstem Implant, Medit, and BHC, as well as the 390 billion KRW it lent for the purchase of Golfzon County. While NH claims this was a routine balance sheet management decision, industry insiders speculate that the move was intended to secure liquidity ahead of a 1.5 trillion KRW loan for Korea Zinc’s public tender offer.
According to the investment banking sector on the 30th, NH Investment & Securities securitized the 390 billion KRW loan it had provided to Korea Golf Infra Investment, the special purpose company (SPC) established by MBK in 2018 to acquire Golfzon County, Korea's leading golf course operator. NH transferred 241 billion KRW of senior debt and 150 billion KRW of mezzanine debt to a Meritz Securities trust, which then issued trust beneficiary certificates that were sold in the market to raise cash. NH also provided credit guarantees for the repayment of the securitized bonds.
Korea Golf Infra Investment owns a 54.83% controlling stake in Golfzon County and 3.54% in convertible preferred shares (CPS), a type of stock that pays high dividends but lacks voting rights, with the option to be converted into common shares. Golfzon Newdin Holdings, the parent company of Golfzon Group, holds the remaining 41.63% of common shares.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
