LG Hausys won’t increase the scale of its two-tranche offering of 150 billion won ($133.2 million) although book-building demand more than tripled the supply as it wants to keep debt strictly for funding for LG Science Park, a research complex building LG Group is building in Magok, northwestern Seoul.
According to the investment banking industry Friday, LG Hausys drew 490 billion won for its offering of 150 billion in two tranches - 260 billion won for 50 billion in three-year papers and 230 billion won for 100 billion in five-year issues. It is the AA-company’s first offering in two years. The debt is underwritten by KB Securities Co., NH Investment & Securities Co., Korea Investment & Securities Co. and Cape Investment & Securities Co.
Due to strong demand, the coupon on the three-year note would likely be priced 7 basis points below the guidance by a local rating agency and the five-year note two basis point lower.
LG Hausys was spun off from LG Chem Ltd. in April 2009. Its largest shareholder is LG Corp. with a 33.5 percent stake. It specializes in windows and curtain walls, interior materials, automotive material and high performance material parts.
By Park Yoon-gu
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