BIS Industries Ltd. Rating Lowered To #CC# On Proposed Recapi Outlook Negative

Stocks and Financial Services Press Releases Friday July 21, 2017 17:12
MELBOURNE--21 Jul--S&P Global Ratings

MELBOURNE (S&P Global Ratings) July 21, 2017--S&P Global Ratings said today that it had lowered its long-term corporate credit rating on BIS Industries Ltd. to 'CC' from 'CCC-'. The outlook on the rating is negative.

At the same time, we affirmed the 'C' rating on the company's payment-in-kind (PIK) notes issued by BIS' related entity Artsonig Pty Ltd. The recovery rating on the PIK notes remains at '6', reflecting our expectation of negligible recovery prospects in the event of default.

We lowered the corporate credit rating on BIS because the company has announced that it has reached an agreement in principle with its lenders for the recapitalization of its balance sheet. The agreement establishes a proposed recapitalization of BIS by way of a scheme of arrangement, which would include a debt-for-equity swap for both the lenders and subordinated PIK noteholders.

The proposed transaction will extinguish about A$1 billion or 80% of the company's total outstanding debt. In exchange, both lenders and PIK noteholders will assume ownership of BIS' operating entities.

The scheme is subject to the necessary approvals by stakeholders. However, we believe the probability of it been implemented is highly likely given a reduction in debt is needed for the ongoing viability of the business.

Although we are lowering the rating today, we note that a reduction in leverage will be positive overall. This should result in a more sustainable capital structure and allow BIS to pursue further growth opportunities in the future.

The negative outlook reflects the likelihood that we will lower the rating to 'SD' (selective default) following completion of any debt-for-equity conversion. This is likely to occur in the fourth quarter of 2017.

Latest Press Release

Permission to Issue Baht-denominated Bonds or Debentures by Foreign Entity in Thailand during 1stMay 2019 31stJanuary 2020

Pursuant to the Ministry of Finance's Ministerial Notification re: Permission to Issue Baht-Denominated Bonds or Debentures in Thailand on the 11th April 2006 and four amendments, which stipulates criteria for permission to issueBaht-denominated bonds or...

Ontario Teachers# to invest in global disruptive technology through new innovation platform

Ontario Teachers' Pension Plan (Ontario Teachers') is pleased to announce it is launching a new investment department, Teachers' Innovation Platform (TIP). TIP will focus on late-stage venture capital and growth equity investments in companies that use...

Photo Release: 2019 GL Annual General Shareholders Meeting

Group Lease Public Company Limited (GL) led by Mr. Skol Harnsuthivarin (5th from left), Chairman of the Board of Director, Mr. Tatsuya Konoshita (6th from left), Chief Executive Officer together with the Board of Directors held the 2019 Annual General...

Photo Release: EXIM Thailand Holds FX Risk Management Phase 2 e-Learning To Promote FX Risk Hedging Tools for SME Exporters

Mr. Chana Boonyachai (left), Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently took a group photo with Ms. Vachira Arromdee (center), Assistant Governor, Financial Markets Operations Group of the Bank of Thailand (BOT),...

Guangdian Capital (GDC) Backed Mountain Top Receives Investment from China#s Tech Giant ByteDance

In March 2019, China's tech giant ByteDance has invested in Mountain Top, a leading talent agency in China. The previous funding round of Mountain Top was led by Guangdian Capital ("GDC"), which has invested RMB 100 million in the company back in 2016....

Related Topics