[Funding] Fila Holdings Issues 80 Billion KRW Private Bonds for Magnus Capital Increase of Acushnet Stake

[Asia Economy Reporter Lim Jeong-su] Fila Holdings has issued 80 billion KRW worth of private bonds for the first time since its establishment. It is interpreted that the funds were raised to be used as capital increase funds for Magnus Holdings, which holds shares in the global golf equipment company Acushnet.

According to the investment banking (IB) industry on the 18th, Fila Holdings issued private bonds worth 70 billion KRW under the management of Hana Financial Investment. The bond maturity is 3 years with an interest rate of 2.135%. Fila Holdings' credit rating is rated A+.

The raised funds are known to be used for the capital increase of Magnus Holdings, a 100% subsidiary. Fila Holdings recently decided to support about 90 billion KRW in capital increase funds to Magnus Holdings.

Magnus Holdings is an intermediate holding company that owns 52% of Acushnet (brands: Titleist, FootJoy, etc.). Through Magnus Holdings, it controls major affiliates such as the US Acushnet Company.

Magnus Holdings plans to repay maturing borrowings with the funds raised by issuing new shares to the parent company. As of the end of last year, Magnus Holdings' borrowings amounted to about 200 billion KRW, and Fila Holdings provides credit support such as funding supplementation commitments for the entire borrowings.

An IB industry official said, "Previously, Magnus Holdings steadily increased its stake in Acushnet with funds raised by issuing new shares to Fila Holdings," adding, "This time, as the group's overall performance has improved, it appears to be working on improving its financial structure."