IMM Private Equity has almost finished its refinancing of loans taken out to fund the acquisition of industrial gas producer AirFirst, with about 40 lenders participating.

The PE firm has formed a syndicate of lenders and allocated loans for the combined 1.15 trillion won ($1.04 billion) refinancing on AirFirst, industry sources said on Monday (November 16). Existing lenders were among those submitting letters of commitment.

The syndicate includes Korea Teachers’ Credit Union, Military Mutual Aid Association and Korea Federation of Community Credit Cooperatives. Shinhan Bank, Shinhan Investment Corp., Samsung Securities and NH Investment & Securities are arranging the refinancing. 

Existing debt of 700 billion won held by the holding company will be refinanced by IMM PE through a new loan. The firm will also refinance existing debt of 200 billion won held by the operations company and use a short-term bridge loan of 250 billion won for a new investment. IMM Private Equity is creating a new project fund for the refinancing.

Pension funds and mutual aid association are reviewing possible participation in the project fund for AirFirst’s capital increase.

Potential lenders appear to be positive on the deal because of the company’s consistent cash generation and hopes for a strong financial performance.

AirFirst needs to expand its facilities after it was selected as an industrial gas supplier for Samsung Electronics’ third memory plant at the Pyeongtaek Campus, which is likely to cost about 600 billion won. It may also get more work from Samsung Electronics, as the tech giant plans to build three more production lines at the Pyeongtaek Campus.

The refinancing is likely to be completed next week. (Reporting by Hye-ran Kim)

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