Songwon to restructure financials

Ulsan-based Songwon Industrial Co., Ltd. (CEO Jongho Park), a leading producer of Specialty Chemicals and in particular of plastic antioxidants, announces plans to secure financing that will ensure financial stability and establish a firm foundation for the company’s future growth.  

The company has concluded an agreement with five lenders on February 18th for a syndicated loan valued at KRW 220 billion (US$0.2 billion) with Korea Exchange Bank as the lead institution and Woori Bank as the joint lead. 

Members of the Executive Committee from the company will host meetings on February 21st and 22nd to brief domestic banking institutions, financial analysts, credit rating agencies and domestic investment institutions on this development. 

Songwon aims to restructure its current finances by consolidating outstanding loans extended to it by several financial institutions through the single syndicated loan. It will also decrease its proportion of short-term debt by increasing long-term borrowing, thereby providing additional stability and reducing borrowing costs. The company predicts it will be able to expand available short-term operating capital with RCF worth KRW 50 billion out of KRW 220 billion syndicated loan and by simultaneously reducing financial costs and improving its ability to repay interest with an approximate one percent decrease in annual interest charges.

Reflecting the strong and continued growth in global demand for antioxidants, Songwon Industrial Co., Ltd. constructed in 2007 what was then to become the world’s largest fully back-integrated antioxidant factory at its plant in Maeam, Ulsan, which is located on the southern tip of South Korea.  

Following that the company actively continued to invest to improve cAir Max 95 20th Anniversary Flyknit