Reorg Credit Intelligence – 10/18/2021
Jababeka Contemplated $350M Issuance Likely Negatively Affected By Worsening Leverage, Limited Financing Diversity, Decreasing Recurring Revenues as Power Plant Faces Oversupplied Grid; Improving Marketing Sales, Substantial Landbank Positives
Chart
Indonesian industrial real estate developer and infrastructure provider PT Kawasan Industri Jababeka Tbk (Jababeka) is in the midst of seeking shareholders’ approval to issue up to $350 million of new notes in order to refinance its existing $300 million 6.5% due October 2023 senior notes. Jababeka’s leverage metrics and recurring revenue streams have worsened over the past few years and it has demonstrated limited diversification of financing sources that may be necessary for it to successfully tap USD debt capital market for its upcoming refinancing exercise. Click through to read our full analysis here.
Contact: Matt Danese
mdanese@reorg.com
Latest news
Spread per turn of leverage tightened 5% for lower middle market
Lenders benefited from better risk-adjusted pricing for larger middle-market and large-cap deals in the third quarter.
Middle market debt held by BDCs vs High yield vs Treasury yields
The blue line shows BIZD’s dividend yield rising 130bps in a month to 12.9% as of 22 October, although most…
Single-B loan pricing faces renewed pressure in October; 150 bps gap to double-Bs
We noted in our monthly leveraged loan coverage how average new-issue institutional loan yields moved somewhat counterintuitively: single-Bs tightened 14bp…