Kumho’s Georgia factory to be funded by bond sale

Kumho Tire will finance the construction of its new one million square-foot manufacturing plant in Macon, Georgia, USA through bond issuance. Local news sources report that the Macon-Bibb County Industrial Authority agreed to issue bonds of up to $600 million for the plant in December.

Kumho will sell up to $300 million of the total bonds approved to finance the construction and equipping of the tyre plant, according to the reports, with the South Korean-based tyre maker deciding when such sales will take place.

The bonds are expected to be underwritten by Bank of America and Merrill Lynch, which will sell them to investors, according to The Macon Telegraph.

The Telegraph adds the detail that Kumho plans to draw down the $300 million in $100 million increments in order to release cashflow necessary to finance continued construction.