Fitch puts Soechi Lines notes on watch

Fitch Ratings said it placed the rating on the $200 million of 8 3/8% senior unsecured notes guaranteed by PT Soechi Lines Tbk. on rating watch negative. The placement follows Soechi reporting it launched a cash offer to buy back a portion of the notes using proceeds from a secured loan facility. Simultaneously, Fitch affirmed Soechi's long-term issuer default rating at B.

The notes were issued by Soechi's wholly owned subsidiary Soechi Capital Pte. Ltd.

The RWN on the notes reflects the likelihood of below-average recoveries (less than 31%) and notching-down of the bond rating if Soechi replaces the majority of the unsecured notes with proceeds from the new secured loan in its capital structure, Fitch said.

Soechi is offering 70 cents per dollar on the notes, which are trading at around 60 cents, Fitch said.

The exchange is not considered a distressed debt exchange because the agency said the tender is not being conducted to avoid bankruptcy or payment default,

The outlook is stable.

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