Moody’s ups Indika Energy, notes to B2

Moody's Investors Service said it upgraded Indika Energy Tbk.’s corporate family rating to B2 from Caa1 following the successful raising of $265 million of new notes to refinance outstanding notes of $171 million which mature in May 2018.

At the same time, the agency upgraded the ratings on the $171 million senior secured notes issued by Indo Energy Finance BV, the $500 million senior secured notes issued by Indo Energy Finance II BV and the $265 million senior secured notes issued by Indika Energy Capital II Pte Ltd. to B2 from Caa1. All notes are unconditionally and irrevocably guaranteed by Indika and rank pari passu.

The outlook is stable. This concludes the review for upgrade initiated on March 27.

"The upgrade of Indika's ratings reflects the significant improvement in the company's liquidity profile and debt maturity profile following the successful refinancing of its 2018 notes," Moody's assistant vice president Rachel Chua said in a news release.

On April 10, Indika issued $265 million of new senior secured notes due 2022, the net proceeds of which will be used to fully redeem the current outstanding notes of $171 million maturing in May 2018 as well as repay bank debt held under its key subsidiaries. On April 11, Indika issued a notice of redemption for its 2018 notes and will repay the notes on May 10. The rating on the 2018 notes will be withdrawn once they are fully repaid.

Moody’s said the transaction is leverage neutral, with incremental debt of about $20 million, and has materially extended Indika's debt maturity profile, with the next major maturity in 2022.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.