Hana Fin joins Foxtel’s refinance with $136 mn loan: report

Hana Financial Investment Co. Ltd. has provided A$200 million ($136 million) loan to Foxtel Management Pty Ltd., according to a South Korean news report, taking part in a refinancing round for the Australian pay TV operator owned by News Corp. and Telstra.

Foxtel has been seeking a $2.5 billion refinancing of debt over different tranches maturing starting from this year, for which its majority shareholder News Corp has injected $700 million in loans.

Hana provided the loan via a domestic fund with a term of five years and one month which pays dividends every three months, the Asia Economy said on Nov. 21, citing investment banking sources.

Seoul-based AI Partners Asset Management Co. launched the fund.

Details about the type of the loan and its expected yield were not immediately available. Hana was not reached for comment.

“Now that the South Korean base rate fell to as low as 1.25%, the attractiveness of debt in developed countries, which yields 3-5%, has been increased,” the daily quoted an unnamed source as saying.

On Nov. 8, News Corp’s chief financial officer Susan Panuccio said on a conference call that the company expected to complete the refinancing of a significant portion of Foxtel debt in the coming weeks which would include a package of bank refinancing, third-party financing and additional shareholder funding, the Australian Financial Review reported.

In the face of competition from Netflix and Stan, Foxtel is under pressure from declining revenue and earnings.

The refinancing deal comes as South Korean brokerage companies are ramping up debt investment, while slowing down the pace of property acquisitions abroad.

Shinhan Investment Corp. recently provided around 120 billion won ($102 million) in a senior loan to Australia’s Rockpool Dining Group which reportedly secured a $250 million debt refinance in September, the Asia Economy said earlier this month.

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