Moody’s rates Bumi Serpong notes Ba3

Moody's Investors Service said it assigned a senior unsecured bond rating of Ba3 to the proposed 2023 senior unsecured notes to be issued by Global Prime Capital Pte. Ltd. – a wholly owned subsidiary of PT Bumi Serpong Damai Tbk. (BSD, Ba3 stable) – and guaranteed by Bumi Serpong and some of its subsidiaries.

Bumi Serpong will use up to $75 million of the bond issuance proceeds for capex, working capital and other general corporate purposes. It will use the remainder – through a tender offer – to repurchase any and all of the $225 million 2020 senior unsecured notes issued by Global Prime.

"This additional debt of up to $75 million will weaken BSD's financial metrics over the next 12-18 months, but we expect the company to remain adequately positioned within its Ba3 rating parameters," Moody's vice president and senior analyst Jacintha Poh said in a news release.

"The successful completion of BSD's tender offer will also extend its debt maturity profile to 2023 from 2020, and bolster its strong liquidity position."

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