Hyundai to raise loan

Hyundai to raise loan

SEOUL (AFP): South Korea's Hyundai Electronics America Inc. (HEA) will issue floating rate notes (FRNs) worth US$340 million July 10 in Hong Kong, an official said here yesterday.

The FRN float by HEA, an American subsidiary of Hyundai Electronics Co. was arranged to raise funds for the takeover of NCR Microelectronics Product Division, a Hyundai spokesman said.

The division is a subsidiary of AT and T GIS, a U.S. nonmemory-chip firm, acquired by HEA in February.

Korea First Bank will be the lead manager of the issue of FRNs, with another 31 domestic and international banks being in the syndicating group.

The FRNs mature in five years and their interest rates will be LIBOR plus 0.5 percent, the leading bank said.

"There are many people who expect that the FRN issue will be the deal of the year 1995 in Asian syndication markets," an official of Korea First Bank was quoted as saying.

HEA was set up in 1983 in California, the United States, with 60-to-40 investments by Hyundai Electronics and its sister firm Hyundai Heavy Industries Co.