The Firm represented Citigroup Global Markets Limited, J.P. Morgan Securities plc, The Korea Development Bank and Woori Investments & Securities Co., Ltd., as initial purchasers, in connection with an offering of US$500 million aggregate principal amount of 3.250% senior capital securities (the “Securities”) by Doosan Infracore Co., Ltd. (“Doosan Infracore”). The Securities, issued in the form of perpetual hybrid bonds, are structured to give a put option to the investors upon the occurrence of certain defined events. The put option is backed by credit enhancement provided by a syndicate of commercial banks. This was the first hybrid perpetual bonds offering by a corporate issuer in Korea.
The offering was conducted in reliance upon Regulation S under the Securities Act of 1933. The Securities are listed on the Singapore Stock Exchange.
Doosan Infracore is a major global manufacturer of construction equipment and machine tools.
The Simpson Thacher team for the transaction included Jin Hyuk Park, Sinead O’Shea, Soo K. Chung, Jackie Kahng, Jonathan Hwang and Hyun Kang (Brian) Kim (Corporate) and George Wang (Regulatory).
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