Moody’s reviews Gajah Tunggal, rates notes Caa1

Moody's Investors Service said it placed the Caa1 corporate family rating of Gajah Tunggal Tbk. and the Caa1 rating on its $500 million senior secured notes due February 2018 on review for upgrade following the announcement of Gajah Tunggal's refinancing plans.

The agency also assigned a Caa1 rating to the proposed senior secured notes due 2022. The proposed notes were placed on review for upgrade.

On July 31, Gajah Tunggal announced that it entered into a $250 million five-year senior secured loan facility and launched a senior secured note offering. Proceeds from the loan and notes will be used to refinance the $500 million notes maturing in February 2018.

"Gajah Tunggal's announcement of the committed loan facility and notes offering is a significant step in the refinancing of its upcoming notes and signals that it has access to multiple funding options to address the elevated refinancing risk reflected in the Caa1 rating," Moody's vice president and senior credit officer Brian Grieser said in a news release.

The review for upgrade will focus on the company’s ability to execute the refinancing, as currently proposed, which would materially address liquidity concerns arising from the upcoming maturity, the agency explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.