Dec 9, 2010

Fitch downgrades Arpeni bond rating to C

PT Fitch Ratings Indonesia affirmed the U.S. dollar-denominated bonds of PT Arpeni Ocean Line Tbk  at C level.
In the press release published last night, Director & Primary Analyst at Fitch Ratings Indonesia Jessie Wahab said the downgraded action was taken in the grace period given to the bond issuer, about 30 days from the settlement.
The foreign and local Credit ratings of Arpeni still set at the level of RD. The company's long-term national rating is still at RD level.
The liquid and bulk shipping company also plans to issue convertible bonds worth US$60 million and new shares amounting US$70 million to raise its capital.
The company which owned by Oentoro Surya was offering bonds only to some prospective investors. The initial deal was outlined in a term sheet confirming the tenor of the bonds would be matured in 5 years.
"Term sheet also shows that the investors will buy as much as 35% from US$70 million of new shares. The new shares will be published simultaneously with the issuance of convertible bonds," said Director & Corporate Secretary of Arpeni Ronald Nangoi in a public exposure in last October.
To realize the plan, now, the company is conducting a due diligence on some prospective investors that will be held for 8 weeks.

Disclosure: No position at the stock mentioned above.

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