Malaysia's Puncak Niaga extends tenor of secured serial primary bonds

By Marisa Wong

Madison, Wis., April 19 - Puncak Niaga Holdings Bhd. announced a restructuring of wholly owned subsidiary Puncak Niaga (M) Sdn. Bhd.'s outstanding bonds.

Specifically, the subsidiary entered into agreements on April 19 to revise the terms of its RM 1.02 billion of Bai Bithaman Ajil secured serial primary bonds, RM 435 million of redeemable unsecured bonds and RM 546,875,000 of redeemable unsecured coupon-bearing notes.

According to a company announcement, the maturity dates of all six series of secured bonds were extended to Oct. 27, 2016.

Currently, the subsidiary's RM 180 million of series 1 bonds are set to mature Oct. 27, 2015, the RM 180 million of series 2 bonds are due Oct. 27, 2016, the RM 180 million of series 3 bonds were due Oct. 27, 2011, the RM 180 million of series 4 bonds were due Oct. 27, 2012, the RM 150 million of series 5 bonds are due Oct. 27, 2013, and the RM 150 million of series 6 bonds are due Oct. 27, 2014.

Other changes to the terms of the secured serial primary bonds were made, including the removal of financial covenants.

As for the unsecured bonds, Puncak Niaga has now assigned an operating account and mandatory redemption account as collateral.

The company said the revised terms of its outstanding bonds enable it to reprofile its payment obligations in view of Syarikat Bekalan Air Selangor Sdn. Bhd. (Syabas), another Puncak Niaga subsidiary, not making full payment toward Puncak Niaga (M) Sdn. Bhd.'s monthly invoices for the supply of treated water.

The water treatment company is based in Shah Alam, Malaysia.

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