Jan 26, 2011

Sulfindo Adiusaha delays bond sale

PT Sulfindo Adiusaha, an Indonesian company which makes chlorine and chemicals, delayed a planned sale of dollar bonds.
A source said the company decided to postpone its sale while alternative structures are being discussed, the person said, without elaborating.
Sulfindo has mandated Barclays Plc and Standard Chartered Plc to help sell five-year fixed-rate dollar bonds, another person familiar with the matter said on Jan. 10. Meetings with investors were held in Asia, Europe and the U.S. earlier this month, that person said. 
Standard & Poor's Ratings Services today assigned its B long-term corporate credit rating to Sulfindo. The outlook is stable.
The rating agency also assigned its B issue rating to the proposed senior secured notes to be issued by Sulfindo Netherlands B.V. Sulfindo and some of its operating subsidiaries guarantee the notes, which mature in 2016.
"The rating on Sulfindo reflects the company's highly leveraged financial risk profile and exposure to the cyclical chlor-alkali industry, which results in volatile prices in its end-products," said Standard & Poor's credit analyst Wee Khim Loy. 
"The rating also factored in the company's large investment requirement, execution risk from its power plant project, and single-site concentration risk, even though the manufacturing facilities are separated by public roads."

Disclosure: No position at the stock mentioned above.  

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