Refinancing of Construction Loan for Bando Series Hobup Foret and The Crosby GC

[Asia Economy Reporter Lim Jeong-su] Hobup Foret, a golf course operator affiliated with Bando Group, refinanced the loan borrowed for the payment of construction costs of the golf course 'The Crosby GC' in Icheon, Gyeonggi-do.

According to the investment banking (IB) industry on the 4th, Hobup Foret raised 40 billion KRW through a special purpose company (SPC) organized under the lead of Hana Bank. The loan maturity is 1 year and 10 months, with a condition of lump-sum principal repayment at maturity.

Hobup Foret provided The Crosby GC as collateral during the loan process. It set a second-priority mortgage lien on the golf course land and buildings for the lenders. A first-priority mortgage lien with a maximum claim amount of 120 billion KRW has already been established in relation to existing loans borrowed from KEB Hana Bank and Korea Development Bank Capital.

Additionally, Bando Holdings, the group's holding company, provided a capital supplementation agreement. This means that if Hobup Foret itself faces difficulties in repaying the principal and interest of the loan, Bando Holdings will provide the lacking liquidity on its behalf. Hana Bank, the lead arranger, also provided some credit support.

The procured funds will be used to repay existing loans borrowed from Bando Holdings, Bando Construction, and Bando Development. Hobup Foret had previously borrowed loans to pay project costs to Bando Construction and related companies during the construction of The Crosby GC. This refinancing was done to repay those loans.

The Crosby GC is a 27-hole public golf course located at 177, Jungbu-daero 798beon-gil, Hobup-myeon, Icheon-si, Gyeonggi-do, which Bando Group opened in April last year. It is the second domestic golf course owned by Bando Group, following Bora CC, a 27-hole membership golf course in Ulju-gun, Ulsan Metropolitan City.

Overseas, Bando Group operates The Crosby GC in San Diego, USA, and Kamo GC in Chiba Prefecture and North Shore GC in Ibaraki Prefecture, Japan. In total, it operates five golf courses domestically and internationally.