Doosan Bobcat

Doosan Bobcat Successfully Establishes Itself in North American Compact Tractor Market

Doosan Bobcat has successfully established itself in the North American compact tractor market, showing a steady increase in sales so far in 2020.
On June 18, the company announced that the compact tractor it launched last year is doing very well in the North American market this year, with total sales standing at 1,400 units as of the end of May. The achievement is all the more impressive given the unusual situation caused by the COVID-19 pandemic. At present, the product looks highly likely to surpass the annual sales target of 3,000 units in the North American market before the year’s end.
The continent’s compact tractor market amounts to approximately 170,000 units per year. Doosan Bobcat aims to seize a 10% share, i.e. 300 billion won in sales, of the market by 2025.
The main reasons why Doosan Bobcat's compact tractors have established a presence in the North American market so quickly include its unique brand recognition in the compact equipment market and the reliable service of its local dealers. Doosan Bobcat has maintained the highest market share in the North American compact construction equipment market for over ten years on the basis of its strong sales network, which comprises over 600 outlets, and its abundant sales know-how.
“Despite the recent impact of COVID-19 in North America, Doosan Bobcat's unique competitive edges, including its excellent product performance and diverse financing programs, have resulted in steady sales increases, with the synergistic effects expected to spread to sales of the company’s compact tractors and other compact equipment,” said an executive of Doosan Bobcat, “We will consolidate our position as the leader of the global compact equipment market by continuously expanding our product portfolio.”

2020-06-18

Doosan Bobcat announces $300 million Senior Secured Notes Offering

Seoul, South Korea –May 20, 2020– Doosan Bobcat, Inc. (“Doosan Bobcat”) (KRX: 241560) today announced that its direct, wholly-owned subsidiary, Clark Equipment Company (the “Issuer”), plans to conduct an offering of $300 million in aggregate principal amount of senior secured notes due 2025 (the “Notes”) in a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), subject to market conditions. The Issuer intends to use the net proceeds from the offering for general corporate purposes and to pay related transaction fees and expenses.
The Notes will be guaranteed by Doosan Bobcat, which also guarantees indebtedness under the Issuer’s term loan agreement (as amended from time to time, the “Term Loan Credit Agreement”) and asset-based revolving credit agreement (as amended from time to time, the “ABL Credit Agreement”). The Notes will be secured by a first-priority lien on all of the Issuer’s and Doosan Bobcat’s assets that secure indebtedness under the Term Loan Credit Agreement on a first-priority basis, and by a second-priority lien on certain current assets of the Issuer that secure indebtedness under the ABL Credit Agreement on a first-priority basis.
The Notes will be offered in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to certain non-U.S. persons in transactions outside of the United States in reliance on Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or the securities laws of any state or jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.


About Doosan Bobcat
Doosan Bobcat, founded in 1947, is a leading global manufacturer and distributor of construction equipment, related attachments and portable power equipment, focusing on the compact construction equipment market with premium brands and leading market positions. Our products serve various industries, including the construction, landscaping, agriculture, oil and gas, mining and manufacturing industries. Doosan Bobcat products are marketed globally under two key brands “Bobcat” and “Doosan”.


Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward- looking statements, including all statements regarding the offering of the Notes. Forward-looking statements are generally identified by our use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “seek”, or “should”, or the negative thereof or other variations thereon or comparable terminology. Where, in any forwardlooking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans, expectations, assumptions, estimates, and projections of our management. Although we believe that these statements are based on reasonable expectations, assumptions, estimates and projections, they are only predictions and involve known and unknown risks, many of which are beyond our control, that could cause actual outcomes and results to be materially different from those indicated in such statements.
The forward-looking statements included in this press release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.


Contacts
Doosan Bobcat, Inc.
Youngil Kang General Manager,
Investor Relations
youngil.kang@doosan.com

2020-05-20

Doosan Bobcat’s Remote Control Technology Selected as ‘the Best Innovative Product 2019’ by a North American Professional Magazine

On January 29, Doosan Bobcat announced that its remote control technology 'Max Control' had won the ‘Gold Award’, the top prize at the Innovative Product Awards 2019 hosted by Rental Equipment Register.
Marking their 17th anniversary this year, the Innovative Product Awards recognize the most innovative technologies of the year in the construction and landscaping industries.
Doosan Bobcat's Max Control technology, winner of the highest honor at the award show, is a new technology that enables the user to operate construction equipment by remote control using an IOS-based iPhone or iPad, a first in the construction industry. Max Control was unveiled at the CES 2020 held in Las Vegas, USA.
High product compatibility and operational convenience are among the major advantages that Max Control has to offer. Max Control requires no additional devices: With its Selectable Joystick Controls, customers can apply this function to any model of loader produced since 2004 simply by using a mobile application. The user can operate construction equipment by remote control within a radius of up to 450 meters, and switch it on and off as needed, using a smartphone.
“The Max Control technology greatly reduces the risks involved in rough terrain jobs, and enables a single person to handle multiple items of equipment, which leads to great improvements in operational efficiency,” said an official from Doosan Bobcat. "We are planning to release an Android app and an upgraded version equipped with additional features, such as a front camera, by the end of 2020.”
Doosan Bobcat is currently accelerating its digital transformation: At the CES 2020, the company featured an AR-based work support program and ‘Features on Demand,’ a customer support program available on a portable device.

2020-01-29

Doosan Bobcat Enters North American Landscape Equipment Market with Acquisition of BOB-CAT

On December 2, 2019, Doosan Bobcat Inc. announced the plan to acquire the Zero-turn-Mower business of the BOB-CAT, Steiner and Ryan brands from Schiller Grounds Care, Inc. The estimated purchase price is USD 82mil and transaction is expected to close by the end of year
North America's ZTR market stands at approximately 810,000 units per year, $ 4.8 billion and has grown at an average annual growth rate of 7.8% over the past five years. Doosan Bobcat aims to settle early in the market based on its high brand awareness and dealer capabilities.
Doosan Bobcat secured ZTR Mower products and sales network at the same time and accelerated the expansion of grounds maintenance products with the recently launched Compact Tractor. This will help expand the dealer networks in the southern and western United States, where demand for both products is high, and to expand sales of existing products in the region.
“Mower is a must-have product to enhance our product competitiveness in the ground maintenance industry. And the acquisition will serve as an opportunity to accelerate business expansion in North America.” said Scott Park, chief executive officer and president of Doosan Bobcat. “We will focus on our capabilities to maximize synergy with existing products by rapidly expanding our business to light equipment markets through new products and channels”

2019-12-02

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