Korean Internet giant Kakao plans to raise 270 billion won ($231 million) through bond issuance to pay off debt it borrowed to acquire the country’s top music streaming service provider Loen Entertainment, sources said Thursday.
On Wednesday, Kakao issued three-year bonds worth 70 billion won in private placements with a coupon of 2.08 percent. It hopes to raise another 200 billion won through a public offering in April.
The money will be used to repay 800 billion won in loans that Kakao borrowed from Samsung Securities and Korea Investment Securities to finance its 1.87 trillion won deal to buy a 76.4 percent stake in Loen Entertainment.
The two securities firms will lead the public offering of bonds.
By Park Han-na (hnpark@heraldcorp.com)