Key Details:
- Korean-listed company
- The company has a market cap of USD 100 m +
- Financing requirements: Circa $15 m
- Terms offered: 5-year term
In this case, we assisted a Korean-listed company in securing a non-recourse, single-stock loan for further investment and growth opportunities.
The shares were held in an offshore company, with the UBO as one of the company's employees. The UBO is an entrepreneur holding numerous board positions in several listed companies. Their wealth was predominantly held in this stock listed on the Korean Stock Exchange. Another classic case of a single stock loan utilised by a company to raise additional liquidity for growth at competitive loan terms. The equity formed part of the lender's portfolio for the financing term, but the borrower retains all beneficial ownership and upside from the asset upon completion of the financing term.
Single-stock loans allow shareholders to keep their long-term investment plan on track, so they will receive the dividends, interest or capital appreciation that may accrue. The benefits of securities-backed finance include:
- Liquidity to pursue your existing investment strategy and investment opportunities
- Additional capital without selling securities
- No interruption to your asset allocation and long-term investment strategy
- Credit lines/loans structured according to your individual needs with regards to type, amount, tenure, repayment and currency
- Portfolio yield enhancement
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
