Earlier Repayment
Doosan Bobcat Inc., U.S.-based compact construction equipment maker that was acquired by South Korea’s Doosan Infracore Co., announced on September 29 that it plans to repay US$100 million (110.05 billion won) debt on the 30th (local time in the U.S.) prior to the debt’s maturity date.
In 2014, the construction equipment maker borrowed US$1.7 billion (1.87 trillion won). It made early partial repayments of its debt worth US$100 million (110.05 billion won) in November in the same year and US$120 million (132.06 billion won) in May this year.
Doosan Bobcat is able to repay the debt before the maturity date as the company has seen its earnings improve amid upturn in the North American housing market as well as cash earned from its business operation.
The early repayment of the debt will lower the firm’s debt ratio to 90 percent from 94 percent. Following the repayment, the company also expects its net profit for the third quarter to improve on reduced interest expense for the loan.
“The company aims to continue to make debt repayments before the maturity date based on the steady gain in sales, and solidify its leadership in the global compact construction equipment market by bolstering business soundness and profitability further, said an official from Doosan Bobcat.