JAKARTA - PT Krakatau Steel (Persero) Tbk (KRAS) plans to issue a mandatory a mandatory convertible bond worth Rp 3 trillion and will ask for shareholders' approval at an EGM on 24 November 2020.
According to a prospectus published on Thursday (19/11), the bond has a maximum tenor of seven years through a private placement. The investment executor will be PT Sarana Multi Infrastruktur (Persero) as assigned by the Ministry of Finance, and the coupon will be paid every 31 March and 30 September.
The corporate action, said Krakatau Steel CFO Tardi, is driven by the impact of the coronavirus (COVID-19) pandemic on the company's operations and production. "Investment support from the government through the National Economic Recovery programme will be highly beneficial in maintaining production and operational activities," he said.
Before the bond issuance, Krakatau Steel has 115,000 tonnes per month in sales volume, US$27 million in EBITDA, current ratio of 0.86 times, 0.25 times of EBITDA/interest, and 3.93 times of total loan/equity. After the bond issuance, it is assumed that the company will have 117,000 tonnes per month in sales, US$121 million in EBITDA, current ratio of 046 times, EBITDA/interest of 1.13 times, and total loan/equity of 2.48 times. (LK/MS)