Shin & Kim advised the Mandated Lead Arrangers and other Korean financial institutions as lenders for the KRW 4.3 trillion (approximately US$4 billion) senior financing of MBK’s acquisition of the Homeplus companies from Tesco. It was the largest and most innovative leveraged financing deal in Korea’s history.  Financial close occurred on October 22, 2015.

The financing involved over 60 different Korean financial institutions, including 52 lenders, the trustee and asset management company, making this financing the largest financing in Korea’s history in terms of both the size of the financing and the number of financial institutions involved.

In addition to the sheer size of the financing, this transaction was unique in the way that MBK Partners structured the transaction.  MBK Partners acquired Homeplus Holdings (financed with 100% equity), which in turn acquired Homeplus Stores (financed with 100% equity), which in turn acquired Homeplus (financed with a combination of equity and debt financing); and the senior facilities were extended to Homeplus Stores to finance its acquisition of Homeplus, and to Homeplus to finance its repayment of certain outstanding foreign currency bonds. By extending the senior facilities to Homeplus Stores and Homeplus, the Lenders were able to secure the senior facilities with the assets of Homeplus Stores and Homeplus (in particular, the large real estate holdings of Homeplus Stores and Homeplus).