Doosan Bobcat in $300 Million Offering

Cleary Gottlieb represented Doosan Bobcat Inc. (Doosan Bobcat), and its direct, wholly owned subsidiary Clark Equipment Company, as issuer, in an offering of $300 million of its 5.875% senior secured notes due 2025.

The notes were offered in a private placement in the United States pursuant to Rule 144A and outside of the United States pursuant to Regulation S. The offering launched on May 20, 2020, priced on May 21, 2020, and closed on May 29, 2020.

The notes are 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 are 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 net proceeds of the offering will be used for general corporate purposes.

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. Its 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.”