Humpuss to Sell US$100 Million Bonds

PT Humpuss Intermoda Transportasi Tbk has planned to sell US$100 million during the first half of the year to support the expansion plan.

The company also has planned to conduct EGMS on March 10 to get approval to increase the floating stocks and to sell the bonds.

The President Director of Humpuss Intermoda Agus Darjanto declined to reveal the plan to increase the floating stock and to sell the bonds.

"We will conduct EGMS and to report to Indonesia Stock Exchange. Just wait the EGMS," he said me this week.

He declined to reveal how much stock to sell, but last year he said the floating stocks should be 30%. Last year the company repaid its IDR175 billion loan using its internal cash reserve so that it has lowered the debt to equity ratio and the company may get more loans to buy more ships.

Before the repayment, the company's debts were IDR151 billion and IDR168 billion.
As of September 2007 the company's cash was IDR228 billion and the earnings before interest, tax, depreciation and amortization was IDR269 billion.

Humpus also has the debt of IDR172.5 billion that will mature in 2009.
Today the public has 18.64% shares of Humpuss Intermoda while the rest stocks belong to PT Humpuss (54.37%), PT Danasakti Securities (5.56%), Fordsmith Agents Ltd (5.15%), portfolio (6.87%), and Humpuss Incorporated (9.41%).

Agus said the company has cancelled the plan to securitize the assets to buy more ships.
Asset securitization is risk distribution measure by grouping collection into a group. Then the company may sell some securities guaranteed with the group of asset.

The company has planned to buy two oil tankers, 11 chemical tankers, five bulk ships, and 20 barges.
"We are relying to the seller financing and direct financing. Humpuss change this strategy as it is easier yet more expensive."

He said that direct financing is based on asset financing. "Whenever we buy ships, bank provides 80%-90% of the financing. When we buy Panamax at US$67 million we got the loan of 80%."
Humpuss also got loan commitment from the seller until 90%.