NH Investment & Securities said on the 14th it will arrange $190 million (about 260 billion won) in overseas acquisition financing for global private equity firm Advent International's acquisition of the "Reckitt Essential Home" division.
According to the investment banking (IB) industry, the transaction is a $4.8 billion acquisition of Reckitt's division, of which $2.8 billion will be raised through financing. NH Investment & Securities will arrange $190 million in loans (fixed-rate, medium- to long-term loans for a certain period) and working capital loans within that amount. The company said its arranged volume ranks among the top even compared with more than 15 global investment banks participating in the financing, including Barclays and Citi.
The industry noted that domestic financial institutions moved beyond their traditional role as sub-underwriters in overseas acquisition financing to participate as mandated lead arrangers on par with global investment banks. It is the first case of a domestic financial institution securing mandated lead arranger status in the global syndication market.
Assets to be acquired by Advent include global home care brands such as Air Wick, Woolite, Mortein, and Easy-Off. The brands are sold in more than 100 countries and have high brand recognition and market share in consumer hygiene and home care. The transaction is proceeding with the aim of financial closing within the fourth quarter of this year.
The acquisition financing was more than three times oversubscribed in the overseas syndication market. NH Investment & Securities has completed a sell-down of $100 million out of the $190 million it arranged in the overseas syndication market, and it has separately secured the remaining $90 million to supply high-quality domestic financial products. Working with NongHyup Bank, it plans to offer the amount to NH Financial Group affiliates and domestic financial institutions.
An NH Investment & Securities official said, "This transaction is an example that proves NH Investment & Securities can play a leading role in the global financial market beyond the domestic market," adding, "NH NongHyup Financial signed a memorandum of understanding (MOU) for co-investment in overseas private equity with Korea Investment Corporation (KIC) in May, and strategic support at the group level played a major role."