Woongjin Group is collaborating with Eugene Private Equity (PE) to acquire management rights in the country’s leading funeral company, Freed Life. Woori Bank and DB Financial Investment have decided to handle $500 million in acquisition financing. The remainder is expected to be raised through equity and subordinated mezzanine financing, with DB Financial Group also expected to contribute.
According to investment banking (IB) industry sources on the 17th, Woori Bank and DB Financial Investment recently decided to jointly arrange $500 million in senior acquisition financing. The interest rate is expected to be confirmed in the high 5% range.
Previously, last month, Woongjin Group received exclusive negotiation rights for the acquisition of Freed Life. The sale price is reportedly set at around $900 million.
Woongjin Group and Eugene PE are reportedly procuring $500 million of the $900 million through senior acquisition financing, while $200 million of the remaining $400 million will be raised through equity financing (fundraising through stock issuance) and $200 million through subordinated mezzanine financing. It is expected that affiliates of DB Financial Group, including DB Insurance, will also participate in equity financing and mezzanine issuance.
Woongjin Group-Eugene PE and VIG Partners, the major shareholders of Freed Life, aim to finalize the sale price through due diligence and sign a stock purchase agreement (SPA) by May.