Indonesian satellite pay-TV provider MNC SkyVision is planning to refinance its US$165m notes, dependent on shareholder approval.
The operator announced to the Indonesia Stock Exchange that it intends to hold an extraordinary general meeting on 29 April…
Indonesian satellite pay-TV provider MNC SkyVision is planning to refinance its US$165m notes, dependent on shareholder approval.
The operator announced to the Indonesia Stock Exchange that it intends to hold an extraordinary general meeting on 29 April so that shareholders can agree to the plan.
The refinancing of the 12.75% notes due 16 November 2015 have been rated credit positive by Moody’s today.
The notes are priced at par until 16 November 2013, after which the redemption price will increase to the range of 103% to 106%.
“Refinancing prior to November 2013 could result in lower interest costs and an extended debt maturity profile, thereby enhancing cash flows and liquidity, which is both credit positive,” said Annalisa Di Chiara, VP and senior analyst at Moody’s.
The listed satellite operator is considering both rupiah and US dollar-denominated bond issuances, as well as bank loans, according to the ratings agency.
MNC SkyVision floated 20% of its equity last July and proceeds from the sale, which raised US$220m, will go towards funding the company’s capex this year.
Capex in 2013 is expected to be in the vicinity of Rp850trn, said Moody’s.
“As a result, a refinancing plan with a long-dated maturity profile while providing some cash-flow benefits is positive for the ratings,” said Di Chiara.
Sky Vision is Indonesia’s largest satellite pay-TV provider and operates via two platforms, Indovision and Top TV.