The transaction, which matures in October 2006, is referenced on a portfolio of Korean won-denominated credit card receivables. As part of the transaction, Samsung Card needs to enter into a cross-currency swap to issue US dollar-denominated debt backed by won-denominated assets.
The transaction will be privately placed and ratings are not expected to be public, but the Samsung official said the senior tranche has received triple-A ratings from Standard & Poor’s and Moody’s Investors Service.
According to people familiar with the transaction, Samsung’s notes include a guarantee from a third party that guarantees payment in case revenues from the credit card receivables are not enough to service the debt. The credit enhancement provided by the guarantor would explain the triple-A ratings.
Proceeds from the notes will be swapped back into Korean won and used for working capital. HSBC is the sole lead manager of the transaction.
The week on Risk.net, July 7-13, 2018Receive this by email