JAKARTA. PT Lautan Luas Tbk (LTLS), a distributor and manufacturer of basic and speciality chemicals, plans to issue bonds with a target of obtaining Rp 300 billion for working capital, because its business is affected by the COVID-19 pandemic.
LTLS said that the bonds will be issued in 2 series; Series A (with a 3-year tenor) and Series B (with a 5-year tenor). The principal and interest of the bonds have not been announced. However, Pemeringkat Efek Indonesia (Pefindo) has given "idA-" rating for the bonds.
The company's management further explained that funds obtained from the bonds will be used to cover cost of good sold and operating expenses.
At the end of 2019, LTLS' debt to equity ratio was recorded at 1.01 times. Meanwhile, its EBITDA to interest expense ratio was recorded at 3.14 times. In 2019, the company's revenue fell by 7.66% (YoY) to Rp 6.53 trillion, due to low sales.
For the issuance of these bonds, PT BCA Sekuritas and PT Trimegah Sekuritas Indonesia Tbk (TRIM) were appointed as underwriters. Meanwhile, PT Bank Mega Tbk (MEGA) was appointed as trustee. (KR/AR)