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Photo courtesy of K Car |
[Alpha Biz= Kim Jisun] Private equity firm Hahn & Company has completed the refinancing of acquisition debt for used-car platform K Car, extending loan maturities and securing additional time as it continues to explore a sale of the company.
According to investment banking sources on February 2, the refinancing totaled KRW 533 billion and was arranged by Hana Bank. The loan is secured by 71.44% of K Car shares held by Hahn & Company. While the original maturity was set to expire in January this year, the refinancing extends the maturity by four years to January 2030. The interest rate was set in the high-5% range, higher than that of the previous loan.
Although the refinancing did not reduce interest costs, analysts say it provides meaningful strategic benefits for Hahn & Company as it pursues an exit. With repayment pressure eased, the firm can better control the pace of a potential sale rather than lowering the price aggressively, allowing it to focus on enhancing enterprise value and securing a fair valuation from potential buyers.
Hahn & Company has been seeking to sell its controlling stake in K Car since 2022 but has yet to find a suitable buyer. Alongside K Car, the firm has also put K Car Capital, which was established to handle installment financing at the platform’s launch, up for sale.
Despite the prolonged exit process, K Car’s performance outlook remains positive. Continued operational efficiency improvements are expected to deliver record results. According to FnGuide, K Car’s standalone revenue consensus for last year stands at KRW 2.437 trillion, exceeding its 2024 results. Operating profit is projected at KRW 77.9 billion, surpassing the previous record of KRW 71.1 billion set in 2021.
Hahn & Company acquired SK Encar’s direct sales business in 2018 for approximately KRW 220 billion and rebranded it as K Car. In 2021, the firm recouped KRW 306.5 billion through a secondary share sale when K Car was listed on the KOSPI, already exceeding its initial investment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
