NH Investment & Securities announced on October 14 that it will arrange acquisition financing worth 260 billion won for Advent International’s purchase of the ‘Reckitt Essential Home’ business unit.
According to the financial investment industry, of the approximately 4.8 billion dollars (about 7 trillion won) required for Advent International to acquire this business unit, around 2.8 billion dollars (about 4 trillion won) will be raised through financial procurement.
Of this, NH Investment & Securities is set to arrange a loan of 190 million dollars (about 260 billion won).
The scale of acquisition financing arranged by NH Investment & Securities is reported to be among the largest compared to other global investment banks participating in the deal, such as Barclays and Citi.
NH Investment & Securities stated, “For the first time as a domestic financial institution, we have secured the position of lead arranger in the global syndication market, where a consortium of banks provides long-term loans under common terms.”
The company further explained, “Typically, domestic financial institutions act as sub-underwriters in overseas acquisition financing, but this time, we participated on equal footing with global investment banks, which is significant.”
Of the 190 million dollars, 100 million dollars have already been sold in the overseas syndication market. The remaining 90 million dollars have been separately secured to supply to domestic financial products.
In the process of closing this deal, it was emphasized that “NongHyup Financial Group signed a joint investment memorandum of understanding (MOU) with Korea Investment Corporation (KIC) for overseas private equity funds in May, after which NongHyup Financial Group affiliates made joint investments with KIC in private equity funds managed by Advent. The financial arrangement capabilities of NH Investment & Securities were combined with this, demonstrating company-wide support.”
The assets being acquired by Advent this time include a significant number of global home care brands such as ‘Air Wick’, ‘Woolite’, and ‘Mortein’. The transaction is expected to be completed by the end of this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
