Wednesday, January 27, 2010

Chandra Asri will repay subordinated loan

PT Chandra Asri Petrochemical Center, producer of integrated petrochemical raw materials, to use any remaining amount of the bonds to repay an existing subordinated loan provided by a former shareholder, Strategic Investment Holdings Ltd.
Chandra Asri plans to issue US$250 million bonds and has appointed two underwriters, namely DBS Securities and Deutsche Securities.
Some of the proceeds from the proposed bonds issue to be used to repay in full the outstanding amount on an existing term loan facility, without the company incurring any prepayment penalty.
The bonds to be issued by Altus Capital Pte. Ltd. and guaranteed by Chandra Asri. These notes, originally scheduled for launch in the fourth quarter of 2009, were postponed because of the market conditions prevailing at the time.
The issue rating on Altus' proposed notes issuance reflects the unconditional and irrevocable guarantee by Chandra Asri and its subsidiary PT Styrindo Mono Indonesia. Altus Capital, a wholly owned entity of PT Chandra Asri, was established solely for the purpose of issuing debt securities, and will lend the proceeds of the notes to Chandra Asri. The rating on the notes is subject to finalization of documentation, and confirmation of amounts and terms.
Standard & Poor's Ratings Services had affirmed its B+ long-term corporate credit rating on Chandra Asri with stable outlook. At the same time, S &P affirmed B+ foreign-currency issue rating on the proposed senior secured bonds.
The company under the control of businessman Prajogo Pangestu, possessed 70 percent shares of Chandra Asri and 77.93 percent of PT Tri Polyta Indonesia Tbk. Chandra Asri is the producer of ethylene and propylene and Tri Polyta polypropylene.
Barito acquired Chandra Asri in 2007 worth US$1.05 billion or IDR9.76 trillion. The company financed the acquisition with the fund tapped from the rights issue worth IDR9.16 trillion and Barito debt swap worth IDr697.5 billion to PT Inter Petrindo Inti Citra.

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