According to market sources, the $234 million transaction pays investors an annual coupon of 5.75%.
Although neither the lead manager or issuer have been willing to make many details known about the second deal, what is known is that it featured a revolving structure, as employed on the first deal but a first for consumer loan-backed bonds.
This structure gives the transaction more flexibility because collections on existing receivables can used by Samsung to originate new loans, and revenues from these can be added to the underlying pool backing the deal.
As far as placing goes, a well-placed source says that it was placed privately, which some local bankers have taken to mean that, as with the first deal, it was purchased by an asset backed commercial paper conduit (ABCP), that is operated by ING. That would make sense to the issuer because a repeat deal would save on fees and time if sold to the A1+ rated conduit.
One thing that is certain is that Samsung Capital will return to the market again this year, although this time Salomon Smith Barney has been mandated to handle to company's third ABS transaction of 2001.
It is thought that the issuer's third offering will be backed by credit card receivables, which are becoming a popular asset class in the Korean securitization market.
Aside from numerous domestic issues from Samsung, LG Card and KB Card among others, LG Capital is set is to launch a $300 million international deal later this month or early October via CSFB and UBS Warburg.
