Doosan Bobcat

Doosan Bobcat Successfully Reprices Long-Term Loan to Secure Lowest Spread Possible

Doosan Bobcat Inc. has succeeded in repricing its long-term loan based on its strong business performance, robust financial structure, and upgraded credit rating.
On December 1, Doosan Bobcat Inc. announced that it had successfully repriced its Term Loan B (TLB)* for US$660 million as of November 29, 2019.
* TLB (Term Loan B): TLB refers to a source of project financing provided by US financial institutions including institutional investors and banks.
The repricing has lowered the interest rate spread for Doosan Bobcat’s TLB by 25bp from the previous ‘3-month Libor + 2.00%’ to ‘3-month Libor + 1.75%,’ which it is estimated will save the company around US$1.7 million in financing costs each year.
The 1.75% spread, the lowest for a TLB granted to businesses, suggests that Doosan Bobcat’s business credibility and financial structure have been highly appraised by investors in the United States, the world’s largest financial market. Since Doosan Bobcat procured US$1.3 billion in a TLB at a spread rate of 3.5% in 2013, the company has repaid part of the loan early and succeeded in repricing the remainder multiple times based on its robust business performance and sound financial structure, to the extent that the initial spread has now been halved to 1.75%.
Last May, S&P Global Ratings gave Doosan Bobcat a two-notch upgrade on its TLBs from BB to BBB (investment grade), which was instrumental in reducing the company’s TLB spread. Recently, Doosan Bobcat secured a US$165 million credit line** for the first time in its history on the back of its improved credit rating.
**Credit Line: A credit line refers to the credit limit set by banks for a certain period of time during which the firm in question can borrow and repay money at any time without security within the set limit.
“It is very significant that we have succeeded in readjusting our interest rate and secured the lowest spread possible amid numerous uncertain external factors,” stated a Doosan Bobcat executive in charge of the matter. “We will now focus our attention on securing a medium- to long-term growth engine by expanding the scope of our business and enhancing our product competitiveness in the compact equipment market, in particular, on the back of our improved credit rating, stable business performance, and efficient cash management.

2019-11-29

Doosan Bobcat Opens Global Collaboration Center in Minnesota to Strengthen Global Competitiveness

Doosan Bobcat has established its new Global Collaboration Center (GCC) in Minnesota, USA in a drive to comprehensively strengthen its global competitiveness.
On November 17, Doosan Bobcat announced that it had opened the GCC in Minneapolis, Minnesota with major executives including President/CEO Scott Park in attendance.
The GCC will serve as a control tower that oversees all the key functions the company performs in North America, Europe, the Middle East, Asia and Latin America. It is expected to become the company’s core base, sharing its strategies with each region and integrating its various systems related to new product development, logistics, procurement and IT systems. Doosan Bobcat anticipates powerful synergistic effects in the areas of cost competitiveness, R&D capability, and digital transformation.
“The establishment of the new GCC is a crucial opportunity for us to further strengthen our global competitiveness through the establishment of a global integrated system,” declared President/CEO Scott Park. "We will focus on maintaining Doosan Bobcat's position as the global leader in the compact equipment market by maximizing regional synergistic effects."
Doosan Bobcat also announced a US$26 million facility investment plan at its Litchfield plant, which produces attachments for Compact loaders and excavators. The investment is part of the company’s preemptive response to rising demand for its attachments following the expansion of its product lineup. The company plans to expand the current production facilities by more than three times.

2019-11-17

Doosan Bobcat Opens New Office Building in Dobris, Czech Republic to Expand Presence in Europe and the Middle East

Doosan Bobcat has finished laying the foundations for extending its business in Europe and the Middle East and begun full-fledged efforts to expand its presence in the two regions.
On October 13, 2019, Doosan Bobcat announced that it had held an opening ceremony on October 11 for its new EMEA (Europe, Middle East and Africa) office building in Dobris, Czech Republic, with its top executives including president & CEO Scott Park in attendance.
Built on a 1,561㎡ site, the new three-story office building consists of pleasant offices and diverse convenience facilities covering a total floor area of 3,370㎡.
Since completing its compact equipment manufacturing plant with a floor area of 22,000㎡ in 2007, Doosan Bobcat has built two R&D centers (Training and Innovation Centers) and a logistics center. With the construction of the new office building, Doosan Bobcat EMEA has finished laying the groundwork for expanding its business operations in the continents where it does business.
Based in Dobris, Czech Republic, Doosan Bobcat EMEA is the compact equipment production hub for Europe and the Middle East. In 2018, it rolled out some 17,000 units of compact equipment worth 765 million euros (about KRW 1 trillion). In 2019, the subsidiary is expected to produce more than 20,000 units, representing a 20% increase on YoY, largely due to increased sales in the European market.
President & CEO Scott Park said, “The opening of the new office building is an important opportunity for Doosan Bobcat to strengthen its market leadership in Europe and the Middle East,” adding, “2019 is a critical year for Doosan Bobcat in that the company has further enhanced its status as the market leader in the field of compact equipment throughout the year. Moving forward, Doosan Bobcat will continue to redefine and lead this important market.”
Since the recent announcement of its new business slogan “Next Is Now” Doosan Bobcat has placed particular focus on enhancing its global business competitiveness. To that end, it has launched a new compact tractor for the North American market and a new backhoe loader for the Indian market since September. During the rest of the year, the company plans to launch more new products, including an ‘R Series’ Loader equipped with a new platform, as part of its strong efforts to accelerate its growth worldwide.

2019-10-11

Doosan Bobcat Celebrates Opening of Manufacturing Plant in India

On Aug. 28, 2019, Doosan Bobcat India, the wholly owned subsidiary of Doosan Bobcat Inc., announced lthe inauguration and commencement of operations from its first manufacturing facility in Chennai, Tamil Nadu, India        



With an investment of $26 million over the next five years, the state-of-the art factory covers an area of 21.6 acres and has an annual production capacity of 8,000 units. It is an integrated facility with fabrication, warehouse, assembly and paint shop under one roof, which will initially support the manufacture of backhoe loaders completely designed and developed by the engineering team based in Chennai. This is a new addition to the existing product portfolio of Bobcat in India that comprises various models of skid-steer loaders and mini excavators.

“This new facility will cater to the increasing demand of backhoe loader to support the development of India’s infrastructure and construction segment," said Doosan Bobcat Inc. CEO Scott Park. "India is one of the key markets for Doosan Bobcat to maintain the global leadership in the compact segment.
"By opening the new factory in India, Doosan Bobcat has taken the next step forward to expanding its global presence and growth strategy," Parks said. "This facility represents our long-term commitment to Indian customers, employees and business associates in the nation through development of vendors, promotion of local part procurement, technology transfer and export.”
The B900 Backhoe Loader from Doosan Bobcat is officially being launched in October, 2019. The B900 displays superior performance with the best digging depth, breakout forces, component durability, comfortable operator cabin, advanced hydraulic system and best-in-class total cost of ownership. Serviceability and parts availability is critical and we have developed comprehensive plan to support our customers through our extensive 25 channel partners.

The company also plans to make this facility a global manufacturing hub for export and a regional center of excellence. In addition to backhoe loaders, the company is also looking at localizing its other compact products to serve the Indian market and potentially for the export market that as well.
Future plan of export is considered in the growth plan of DBIN. The factory is going to employ more than 300 personnel at full capacity. The new facility is equipped with modern manufacturing equipment, testing facilities, office space for a research and development center, vendor development and a training center.

2019-08-29

Doosan Bobcat Repays US$ 100 Million Ahead of Schedule, Following Repayment of US$ 250 Million Early in 2019

On August 2, 2019, Doosan Bobcat announced that it had repaid its debt of US$100 million in advance of the due payment date, the second early debt repayment in 2019 alone. After raising some US$1.7 billion through refinancing back in 2014, the company has since repaid US$920 million earlier than scheduled on a total of eight occasions thus far.
As a result, Doosan Bobcat's total debt has decreased by about 57% from US$1.7 billion in 2014 to US$730 million (as of the end of July 2019), with its debt ratio dropping from 105% at the end of 2014 to 68% at present.
Doosan Bobcat began expanding its investment in future growth engines in 2018. In June 2019, it announced its plans to increase its dividend per share for 2019 to 1,200 won. While enhancing new investments and shareholder returns, Doosan Bobcat continues improving its financial structure based on a stable cash flow.
“The latest early repayment is significant in that it shows that Doosan Bobcat has succeeded in strengthening its financial structure through efficient cash management while increasing investments and dividends based on its strong sales performance,” declared an official of Doosan Bobcat. “Based on our robust financial structure, we will expand our business portfolio not just in North America but also in emerging markets; and we will continue to improve our global product competitiveness as a way to lay the groundwork for sustainable growth in the future.”
Meanwhile, Doosan Bobcat has also made great strides in its cash management: On the basis of its high credit rating, the company has acquired a credit line* for the first time since its founding.
*Credit line: A credit line is an arrangement between a financial institution and a company by which the maximum loan amount the latter can borrow repeatedly from the former can be set at any time for a given period without providing any collateral.

2019-08-02