Nov 18, 2010

MNC launches US$165 million bonds

PT MNC Sky Vision has issued US$165 million bonds with annual coupon of 12.75%. 
A source familiar with the deal said the 5 year bonds have three years noncallable. MNC mandated two lead underwriters Standard Chartered Bank and Hongkong and Shanghai Bank Corporation (HSBC).
Moody's Investors Service has assigned a first-time B2 corporate family rating to PT MNC Sky Vision and a provisional (P)B2 rating to the company's proposed US$ notes offering. The ratings outlook is stable.
The proceeds from this issuance will contribute to the acquisition of S-Band satellite transponders from SES S.A. for $95 million and the refinancing of existing indebtedness.
Sky Vision's B2 rating is supported by its dominant share in the Indonesian pay-TV market, premised upon its premium product offering, and its command of Indonesia's largest domestic in-house distribution network.
This situation favorably positions the company for robust organic growth over the medium to long term, said Renee Lam, a Moody's Vice President and Senior Analyst.
"In addition, the rating is supported by the company's moderate level of leverage and solid interest coverage metrics, which are well positioned relative to the B2 rating," said Lam, also Moody's lead analyst for Sky Vision.

Disclosure: No position at the stock mentioned above.  

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