Korean firm Bae Kim & Lee, together with Linklaters and Richards Butler, has acted on the acquisition of a 70.2% stake in Korean retailer The Face Shop Korea Co Ltd.

A company controlled by Affinity Equity Partners Limited turned to Bae Kim & Lee for Korean law advice, as well as Richards Butler, on the US$35m secured facility. Linklaters advised CLSA Mezzanine Management Limited as arranger, agent and security agent.

The structure involved a flexible instrument that improved the sponsor's leverage to part fund the acquisition.

Hong Kong-based partner Trevor Clark - who led a Linklaters team that included partners Keith Johnson and John Maxwell, as well as Patrick Geortay, Stéphane Braun (Luxembourg) and Martijn Koopal (Amsterdam) - said: "The key element was that the mezzanine providers were able to provide financing into the Holdco level without recourse to the target's cash-flows or assets, with no requirement for conventional senior debt."