Tuesday, October 4, 2011

Scomi Group plans bond issue at KMCOB Capital

KUALA LUMPUR: SCOMI GROUP BHD [] plans to issue a new bond at KMCOB Capital Bhd following arising from the disposal of assets which had fully realised their value.

It said on Tuesday, Oct 4, the bonds issuance, when completed, would significantly strengthen the balance sheet.'' The reduced debt and improved cash flow position would help fund new growth opportunities.

'The group intends to proceed quickly and expeditiously to implement the plan, which would put it in a stronger, financially healthier position to prepare for new projects and activities that the company is bidding for and to expand its product portfolio along the oil & gas value chain,' it said.

Scomi said the new issue would position the company at an appropriate capital structure to support long-term business goals with increased financial flexibility.

The statement was issued after Malaysian Rating Corporation Bhd announced that KMCOB Capital and Scomi's bonds had been rated A+ by MARC recently with an outlook on negative.

It said MARC removed the MARCWatch Negative on these bonds. Pending completion of the restructuring and asset disposals, it added the group's liquidity profile would be further strengthened.'' A rating will be done on completion of the debt restructuring plan.

The issuance of the new bonds which saw certain resolutions being passed at the formal bondholders meeting held on Sept 29 has the support of the bondholders as this is being reinforced by improvements in its performance for the first half of the year.

No comments:

Post a Comment