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Friday, October 8, 2010

Arpeni will issue US$60 mio convertible bond and US$70 mio new shares

Irvin Avriano A.
Bisnis Indonesia

Arpeni will issue US$60 mio convertible bond and US$70 mio new shares

JAKARTA: Emitters of bulk and liquid shipping PT Arpeni Pratama Ocean Line Tbk will issue convertible bonds worth US$60 million and will issue new shares amounting to US$70 million to inject capital.

In its information disclosure to the Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia) today, the company who commandeered by Oentoro Surya was plan to issuing debt securities to a single investor. The initial deal was outlined in a term sheet which also confirms the tenure of the bonds would be 5 years.

"Term sheet also requires the investor would purchase as much as 35% from US$70 million of company's new shares issuance which will be issued simultaneously with the convertible bonds issuance," said Arpeni Director & Corporate Secretary Ronald Nangoi in the disclosure.

To streamline the plan, the company is giving the opportunity of an exclusive due diligence to the future investors which time given for 8 weeks.

The success of the deal, said Ronald, still awaiting approval from the company, company's shareholders, lenders, and its bondholders.

The company encounter financial difficulties as reflected by several delaying time limit for corporate bond coupon payments and because of a bankruptcy claim. The bankruptcy lawsuit was delivered by Korea Securities Finance Corporation to Indonesian Court.

The lawsuit stems from a debt from an Arpeni subsidiary in Panama, YED 5 S.A., with Woori Bank and Woori Bank's Global Markets Asia Ltd as the lenders and senior bondholder purchaser. Korea Securities act as junior bond purchaser in the transaction.

The senior debt has been settled but the Korea Securities believe the juniors bond worth US$2.15 million left unpaid.

However, the company assess the lawsuit case are not material and does not disrupt company business continuity.

"Korea Securities lawsuit did not disrupt the company's business operations and the company is still running as it should," Ronald said in his letter to the IDX last week.

He believes that there is no debt that lef unpaid and payable to the Korea Securities, so that the bankruptcy claim was not strong enough.

In addition to these beliefs, he also said the company also still trying to make short-term debt coupon payments paid off.

He said the company will still comply to pay 10th coupon payments from Arpeni II/2008 bond and fee ijarah from Arpeni II/2008 Islamic Ijarah medium term notes (MTN) amid tight liquidity in the company.

Earlier this week, the suspension of trading for Arpeni shares that coded APOL in negotiation market had been opened, but for trading in the cash and regular market are still remains suspended.

Its stock price was still immobile at IDR108 level and establish its market capitalization amounted to IDR323.85 billion.



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