To Repay Debts
Hanjin International concluded a senior secured loan agreement of up to US$343.8 million in December last year by using the Wilshire Grand Center in LA as collateral. The lead manager is Standard Chartered Bank Korea and an initial loan of US$230 million has been executed. Standard Chartered Bank Korea is planning to arrange the additional loan down the road with existing or new creditors.
The borrower is Hanjin International and the guarantor is its parent company Korean Air and Total Aviation Service (TAS), which is Korean Air’s corporation for pilot dispatch.
The annual interest of the loan is 5.5 percent and the maturity date is Dec. 23, 2022. The collateral also includes Korean Air’s Hanjin International shares and Hanjin International’s TAS shares. Hanjin International is planning to use the loan to repay its loan from Korean Air, which lent US$900 million to Hanjin International in September last year.
The Wilshire Grand Center is a landmark building located in the western United States. Last year, its appraised value dropped from slightly less than US$1.1 billion to US$573 million in the wake of COVID-19.