이 기사는 2019년 11월 05일 08:00 thebell 에 표출된 기사입니다.

MBK Partners has successfully refinanced the acquisition of retail chain Homeplus, which the South Korean private equity firm purchased in 2015.

MBK Partners has finished raising about two trillion won to refinance its acquisition of Homeplus, one of the largest supermarket chains in South Korea, after over three months of work, according to industry sources on October 31.

Most of the proceeds have been raised through senior debt, with a five-year maturity. The interest rate is in the upper four-percent range, similar to that for the existing debt. The private equity firm pledged a stake in 78 stores wholly owned by Homeplus as collateral, which reportedly is worth more than six trillion won.

This transaction is the first refinancing of MBK Partners since the buyout fund bought the retail chain from British retailer Tesco PLC in October of 2015. More than half (2.3 trillion won) of the initial acquisition financing (4.6 trillion won) have been already repaid over the last four years, so the private equity firm just refinanced the balance, without additional borrowing.

It is notable that MBK Partners has managed to successfully raise the funds despite a downbeat mood in the retail industry of late. Initially, the homegrown private equity firm had planned to repay the existing debt, which is due at the end of next year, by using the proceeds from the listing of Homeplus real estate investment trust (REIT). But the planned REIT listing was cancelled earlier this year due to a lack of demand, which led the firm to promptly change its plan for refinancing.

MBK Partners gained trust from its creditors with its investment in Homeplus by making continued efforts to transform the business and providing high-quality collateral. Indeed, most of the initial lenders participated in the refinancing again.

Under MBK Partners' ownership, Homeplus seeks to transform itself to fit into a changing environment in the sector. Last year the supermarket chain launched a new store concept called Homeplus Special, which combined advantages of a discount warehouse with the existing business model. Such hybrid stores have seen two-digit growth in sales on average so far.

The retailer's online sales channel is also growing. Homeplus, aiming to get 80 percent of its online fresh food orders delivered the same day nationwide, plans to transform itself into a player with a competitive edge both on and offline.

Homeplus also renewed its corporate identity last November for the first time since its foundation to redefine the ethos of the company in line with a changing retail environment. It also converted more than 14 thousand temp jobs to permanent jobs in July, with permanent staff accounting for 99 percent of the company's employment now.

(By reporter Han Hee-yeon)