Moody’s: Bumi Serpong unaffected by tap offering

Moody's Investors Service said that PT Bumi Serpong Damai Tbk.'s (BSD) Ba3 corporate family rating and the Ba3 senior unsecured rating on the notes issued by wholly owned subsidiary Global Prime Capital Pte. Ltd. and guaranteed by Bumi Serpong and some of its subsidiaries, are unaffected by Bumi Serpong’s announcement of a tap bond offering on its existing $200 million 5½% senior notes due Oct. 18, 2023.

The outlook is stable.

The tap bond offering of up to $100 million has the same terms and conditions as the existing notes, and proceeds will be used to fund the development of investment properties and for general corporate purposes.

"BSD's additional debt will weaken its financial metrics over the next 12-18 months, but we expect that the company will remain adequately positioned within its Ba3 rating parameters, supported by modest revenue growth," Moody's vice president and senior analyst Jacintha Poh said in a news release.

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