Shin Geum Investment, 6 Trillion Won Global M&A 'Cloudera' Acquisition Financing Investment

[Asia Economy Reporters Jeongsu Lim, Soyeon Park] Shinhan Financial Investment has invested in acquisition financing for the global merger and acquisition (M&A) deal of Cloudera, valued at 5.3 billion USD (approximately 6 trillion KRW).

According to the investment banking (IB) industry on the 3rd, Shinhan Financial Investment executed a mezzanine loan (term loan) of about 62 million USD (approximately 70 billion KRW) for 'Project Sky Merger Sub (Sky Merger)'. The loan has an 8-year maturity with a bullet repayment at maturity, but partial early repayment is also possible.

Sky Merger is a subsidiary of Skytopco Holdings, which was established by global private equity firms Kohlberg Kravis Roberts (KKR) and Clayton, Dubilier & Rice (CD&R), each contributing 50%. Through this company, KKR and Clayton plan to raise large-scale funds to acquire the global big data platform company Cloudera.

The total M&A deal size is about 5.5 billion USD, exceeding 6 trillion KRW. Skytopco is expected to receive equity contributions of 2.7 to 2.8 billion USD (approximately 3 trillion KRW), and the remaining 2.7 to 2.8 billion USD will be raised through senior and mezzanine loans. Shinhan Financial Investment acquired part of the mezzanine loan from Bank of America (BOA).

The New York GIB desk played a significant role in this acquisition financing deal. GIB is Shinhan Financial Group’s IB matrix organization, involving Shinhan Financial Investment, Shinhan Bank, and Shinhan Capital, working together from deal sourcing to deal making. Shinhan Financial Investment operates GIB desks in five locations: London, New York, Singapore, Australia, and Tokyo.