Fri 05/21/2021 07:04 AM
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UPDATE 1: 7:04 a.m. ET 5/21/2021: At the first creditors meeting held yesterday, May 20, for PT Sri Rejeki Isman Tbk (Sritex) and its three subsidiaries - PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya - the company’s recently appointed financial advisor AJ Capital told meeting attendees that the FA is now conducting due diligence and collecting more information for the upcoming PKPU composition plan, according to two sources familiar with the matter.

As reported, the company was represented by several people at the hearing, including Sritex’s finance director Allan M. Severino, and AJ Capital director Fransiscus Alip.

At the hearing, Sritex said that its creditors will be divided into five groups:
 
  1. Offshore and onshore syndicated lenders;
  2. Bilateral lenders;
  3. MTN holders;
  4. USD noteholders; and
  5. Trade vendors/ suppliers.
Sritex said during the meeting that MTN holders include Bahana TCW who originally acted as the underwriter for the issuance, and Bank Mega who originally acted as bookrunner agent.

Separately, Sritex’s syndicated lenders signed an engagement letter to appoint Borrelli Walsh as the syndicate group’s financial advisor, according to two sources familiar with the matter.

-- Sarah Yuniarni
 


Original Story 7:05 a.m. UTC on May 20, 2021

BREAKING: Sritex Appoints AJ Capital as Financial Advisor, Replacing Helios Capital at First Creditors Meeting Held Today; Bahana TCW, PT Verena Multi Finance, PT KDB Tifa Finance, PT Bumiputera Join Call as Creditors

A representative of PT Sri Rejeki Isman Tbk (Sritex) at the first creditors meeting held today, May 20, for the company and three of its subsidiaries - PT Sinar Pantja Djaja, PT Bitratex Industries and PT Primayudha Mandirijaya - told meeting participants that the company has appointed AJ Capital as its financial advisor, replacing the previously appointed Helios Capital, said two sources who joined the call.

AJ Capital is already acting as the Singapore financial advisor to the company, as reported.

Sritex was represented by several people at the hearing, including the company’s finance director Allan M. Severino, and AJ Capital director Fransiscus Alip, according to the same sources.

Apart from Sritex’s bilateral and syndicated lenders, other creditors who joined the meeting today included financial services firms Bahana TCW, PT Verena Multi Finance, PT KDB Tifa Finance, and PT Bumiputera, the sources added.

AJ Capital did not immediately respond to a request for comment. Helios Capital affirmed Reorg’s reporting in a written comment.

Sritex’s capital structure is as below.
 
Sri Rejeki Isman Tbk (Sritex)
 
12/31/2020
 
EBITDA Multiple
(USD in Millions)
Amount
Price
Mkt. Val.
Maturity
Rate
Yield
Book
Market
 
HSBC Indonesia 1
42.8
 
42.8
Sep-28-2021
 
 
 
QNB Indonesia 2
35.4
 
35.4
Apr-01-2021
 
 
 
Bank Central Asia 3
7.9
 
7.9
May-09-2021
 
 
 
Bank Negara Indonesia 4
12.2
 
12.2
Sep-03-2021
 
 
 
MUFG 5
26.6
 
26.6
Jan-22-2022
 
 
 
DBS Indonesia 5
4.4
 
4.4
Apr-23-2021
 
 
 
Taipei Fubon 6
20.0
 
20.0
Apr-07-2021
 
 
 
Bank Muamalat 5
29.7
 
29.7
Aug-05-2021
 
 
 
Bank of China (HK) 6
15.0
 
15.0
Sep-30-2021
 
 
 
Bank Pembangunan DJBB 6
38.9
 
38.9
Oct-05-2021
 
 
 
Standard Chartered 7
26.2
 
26.2
Oct-31-2020
 
 
 
Bank Woori Saudara 6
5.0
 
5.0
Jul-28-2021
 
 
 
Bank DKI 6
10.6
 
10.6
Oct-21-2021
 
 
 
Bank Emirates NBD 4
2.6
 
2.6
 
 
 
 
Total Trade/ Working Capital Borrowings
277.3
 
277.3
 
1.2x
1.2x
Bank Central Asia 8
16.2
 
16.2
2023
4.750%
 
 
Bank Permata
2.1
 
2.1
Jul-11-2022
9.500%
 
 
Syndication (Citi Global, DBS, HSBCI) 9
350.0
 
350.0
Jan-02-2022
USD LIBOR + 2.700%
 
 
Total Long-term Bank Borrowings
368.3
 
368.3
 
2.7x
2.7x
Finance Lease 10
23.7
 
23.7
 
 
 
 
Total Leases
23.7
 
23.7
 
2.8x
2.8x
MTN $25mil 5.8% '20 11
25.0
 
25.0
May-18-2021
5.800%
 
 
$150mil Golden Legacy 6.875% '24 12
150.0
 
150.0
Mar-27-2024
6.875%
 
 
$225mil SRIL 7.25% '25 13
225.0
 
225.0
Jan-16-2025
7.250%
 
 
Total Notes and Bonds
400.0
 
400.0
 
4.4x
4.4x
Total Debt
1,069.3
 
1,069.3
 
4.4x
4.4x
Less: Cash and Equivalents
(187.6)
 
(187.6)
 
Net Debt
881.7
 
881.7
 
3.7x
3.7x
Plus: Market Capitalization
287.3
 
287.3
 
Enterprise Value
1,169.0
 
1,169.0
 
4.9x
4.9x
Operating Metrics
LTM Revenue
1,282.6
 
LTM Reorg EBITDA
241.0
 
 
Liquidity
Plus: Cash and Equivalents
187.6
 
Total Liquidity
187.6
 
Credit Metrics
Gross Leverage
4.4x
 
Net Leverage
3.7x
 

Notes:
Reorg EBITDA incl. PSAK 73 effects of ~$12.1mil in 2020
1. - At opcos' level, plus Golden Mountain, maturity estimated based on disclosure
2. Extension in progress
3. Opco Level
4. Golden Mountain level
5. Holdco, opco level
6. Holdco level
7. Holdco + opco level; automatically extended by bank
8. Rate: 4.5% - 5.0%, maturity: 2021 - 2023, Collateralised against PPE, working capital - D/E < 1.5x, EBITDA/ interest >2x, current ratio >1x
9. Rate: 1mL + 250-290bps, Consol. net borrowings/ tangible net worth <1.30x (steps down to 1.15x Jun'21); Consol. net borrowings/ EBITDA < 3.75x (steps downs to 3.6x in Jun'21)
10. For machine rental, PSAK 73 adoption
11. Current asset/ current debt >2x, EBITDA/ interest > 2.5x
12. FCCR > 2.5x
13. FCCR > 2.5x
-- Sarah Yuniarni
 
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