Doosan Infracore to refinance US$2.2 bln

Doosan Infracore Co., South Korea's leading construction equipment maker, said Friday that it has completed a refinancing plan for its acquisition of U.S.-based Bobcat under which it will raise a total of US$2.2 billion through loans and debt sales. Doosan Infracore borrowed some $2.9 billion from investors to finance its takeover of the U.S.-based construction equipment maker in November 2007. According to Doosan, it will raise $1.72 billion from banks including state-run Korea Development Bank with the remaining amount to be financed with bond sales. The maturities of the debts will be extended to between 2015 and 2017, from the current 2012-2014, Doosan Infracore said. "We took pre-emptive measures before maturity as market uncertainties is feared to increase costs," Doosan Infracore said. Doosan Infracore said it will sign an agreement with the banks for the refinancing deal next week.