Lautan Luas to issue bonds to pay off debts

Lautan Luas to issue bonds to pay off debts

JAKARTA (JP): Publicly listed PT Lautan Luas plans to issue Rp
200 billion (about US$23.8 million) in bonds in the domestic debt
market by the end of June.

"Fifty percent of the proceeds from the bond issue will be
used to repay the company's debts, 25 percent of it for business
expansion and the remaining for additional cash balance to
support daily operations," company president Indrawan Masrin said
on Friday.

The rupiah bonds, which will mature in 2005, have fixed coupon
rates of between 16 percent and 17 percent per annum and/or a
floating rate of between 2.5 percent and 3.5 percent over the
average rates on time deposits at five major banks.

The bonds will pay interest every six months.

"The portion balance between the fixed and floating rate bonds
will depend on the market demand. We are being flexible,"
Indrawan said.

Lautan Luas' bonds received an "A" rating with a stable
outlook from state rating agency PT Pefindo.

PT Jardine Fleming Nusantara and PT Trimegah Securities are
the lead underwriters, with state Bank Mandiri acting as the
trustee.

The bonds, issued in denominations of Rp 100 million, will be
offered to the public between June 19 and June 21 and listed on
the Surabaya Stock Exchange on July 7, Indrawan said.

He said the company's total outstanding debt was $24 million.

After the bond issuance, the debts will be repaid, he said.

Lautan Luas posted Rp 55.7 billion in net profit in 1999 on a
total revenue of Rp 637 billion, compared to Rp 85.39 and Rp
600.4 respectively during the previous year.

The company's assets as of December 1999 grew to Rp 596
billion from Rp 572 billion the previous year.

The company's total debts were 40 percent of its total assets.

Lautan Luas distributes and manufactures specialty chemicals
for the local as well as export markets. (udi)