Paul Hastings Advises HD Korea Shipbuilding & Offshore Engineering on Its Issuance of $1.55 Billion Zero Coupon Exchangeable Bonds

Paul Hastings LLP advised HD Korea Shipbuilding & Offshore Engineering Co. (KSOE) on its issuance of $1.55 billion Zero Coupon Exchangeable Bonds due in 2031, exchangeable into common shares of HD Hyundai Heavy Industries Co. The offering was conducted in reliance on Regulation S of the U.S. Securities Act of 1933, as amended, and the bonds were listed on Singapore Exchange Securities Trading Limited. The Hongkong and Shanghai Banking Corporation Limited, J.P. Morgan Securities plc and UBS AG Hong Kong Branch acted as the joint global coordinators, lead managers and bookrunners. The transaction represents the largest exchangeable bond issuance by an Asian issuer year-to-date.

KSOE is an intermediate holding company overseeing HD Hyundai Group’s shipbuilding and offshore businesses, with its principal subsidiaries collectively forming a globally leading shipbuilding and heavy industries powerhouse. The proceeds of the bonds will be used to fund global investments, provide operating capital for overseas business operations and support working capital needs for high-value-added, eco-friendly marine equipment businesses, as well as for general corporate purposes. 

Corporate partner Iksoo Kim led the Paul Hastings team, which also included associate Sye Myung Kim and corporate attorney Hee Jin Woo. The team also included London partner Dan Hirschovits and associate James Lansdown.

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