[Funding] Cowell Fashion Secures 155 Billion KRW Stock-Backed Loan for Rosen Delivery Acquisition

[Asia Economy Reporter Lim Jeong-su] Cowell Fashion has secured acquisition financing worth 155 billion KRW by using its stake in Logen Delivery as collateral. With the full acquisition payment for Logen Delivery secured, Cowell Fashion has successfully completed the acquisition without any issues.

According to the investment banking (IB) industry on the 7th, CF Investment, established by Cowell Fashion for the acquisition of Logen Delivery, signed a loan agreement worth 155 billion KRW with a special purpose company (SPC) organized under the leadership of Shinhan Bank. The loan was divided into a senior loan (Tranche A) of 150 billion KRW and a subordinated loan (Tranche B) worth 5 billion KRW, based on collateral rights and repayment priority.

CF Investment provided its stake in Logen Delivery as collateral during the financing process. The method involved establishing a pledge lien with the lending group as the collateral holder on Logen Delivery shares. The number of pledged shares is 14,823,496 common shares, representing 100% of the collateralized stake.

Cowell Fashion acquired 100% of Logen Delivery’s shares through its wholly owned subsidiary CF Investment. The acquisition price was 340 billion KRW. Cowell Fashion invested 190 billion KRW by participating in a rights offering led by CF Investment and secured the remaining 150 billion KRW through a stock-collateralized loan.

The acquisition of Logen Delivery will be finalized once Cowell Fashion pays the remaining balance on the 8th. The existing major shareholder, Baring PEA, will complete the sale of Logen Delivery, which had been difficult to exit due to the lack of buyers over a long period.

Cowell Fashion sells products from sports and underwear brands such as Puma, Adidas, Reebok, Calvin Klein, and Millet. Its sales channels are predominantly home shopping and online, accounting for 75% and 20% respectively. Offline sales make up only about 5%.

The IB industry expects Cowell Fashion to generate synergy with the logistics network owned by Logen Delivery. An industry insider said, "Logen Delivery’s e-commerce market delivery share reaches 85%," adding, "It is expected to maintain its growth trend through synergies achieved by vertical integration with Cowell Fashion."