Financing Hyundai Motor's Expansion in the U.S.
I have often wondered about the details regarding Hyundai Motor Group in financing its massive expansion. For example, the new manufacturing facility in Alabama cost over $1 billion.
According to an article in the Korea Herald, Hyundai Motor Co.'s new U.S. production unit will borrow $200 million from a Japanese investment bank.
Basis Point Publishing Ltd., a Hong Kong-based provider of Asia-Pacific debt market information, said that Sumitomo Mitsui Banking Corp. has been mandated for the $200 million two-track deal for Hyundai Motor Manufacturing Alabama LLC.
Interestingly, the Mitsui keiretsu is affiliated with Hyundai Auto Group rivals Toyota and Honda.
The deal, which has a guarantee from parent Hyundai Motor Co. comprises a $100 million one-year revolving credit and a $100 million three-year term loan.
Syndication is expected this week as the borrower plans to close the deal by the end of July.
Funds are for general working capital.
This is Hyundai's second visit to the market this year.
According to an article in the Korea Herald, Hyundai Motor Co.'s new U.S. production unit will borrow $200 million from a Japanese investment bank.
Basis Point Publishing Ltd., a Hong Kong-based provider of Asia-Pacific debt market information, said that Sumitomo Mitsui Banking Corp. has been mandated for the $200 million two-track deal for Hyundai Motor Manufacturing Alabama LLC.
Interestingly, the Mitsui keiretsu is affiliated with Hyundai Auto Group rivals Toyota and Honda.
The deal, which has a guarantee from parent Hyundai Motor Co. comprises a $100 million one-year revolving credit and a $100 million three-year term loan.
Syndication is expected this week as the borrower plans to close the deal by the end of July.
Funds are for general working capital.
This is Hyundai's second visit to the market this year.
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