TRIS Rating Co., Ltd. today announced that the credit profile of Nation Multimedia Group PLC (NATION) has not been impacted by the pending of asset sale transactions. NATION recently announced a plan to sell the company’s head office building and office space in Nation Tower. The execution of these transactions will cause a breach of the covenants in NATION’s outstanding debenture issue.
On 24 January 2008, NATION, a leading multimedia company in Thailand, announced a board resolution to sell its head office building and office space in Nation Tower for a combined book value of Bt1,379.75 million. If these sales transactions are completed, the resultant breach of the debenture covenants gives debenture holders the right to call for early redemption. The total debenture issue is worth Bt1,000 million and will mature during 2008-2009, said TRIS Rating.
At the time of the asset sale announcement, NATION also called for a meeting of debenture holders on 12 February 2008 to request a waiver for the breach.
TRIS Rating said that the breach of the covenant will not impact NATION’s credit ratings since the company has already arranged funding in case the debentures are called for early redemption. During the third quarter of 2007, NATION signed a credit facility agreement with three banks to fund this repayment.
A substantial portion of the proceeds from the asset sale will be used to repay existing debt. The repayments will reduce the company’s financial leverage and is not expected to affect the operating performance. TRIS Rating therefore affirms both the company rating and the rating of NATION’s Bt1,000 million senior debentures (NMG092A) at “BBB” with “stable” outlook -- End
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Copyright 2008, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemiNN, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
On 24 January 2008, NATION, a leading multimedia company in Thailand, announced a board resolution to sell its head office building and office space in Nation Tower for a combined book value of Bt1,379.75 million. If these sales transactions are completed, the resultant breach of the debenture covenants gives debenture holders the right to call for early redemption. The total debenture issue is worth Bt1,000 million and will mature during 2008-2009, said TRIS Rating.
At the time of the asset sale announcement, NATION also called for a meeting of debenture holders on 12 February 2008 to request a waiver for the breach.
TRIS Rating said that the breach of the covenant will not impact NATION’s credit ratings since the company has already arranged funding in case the debentures are called for early redemption. During the third quarter of 2007, NATION signed a credit facility agreement with three banks to fund this repayment.
A substantial portion of the proceeds from the asset sale will be used to repay existing debt. The repayments will reduce the company’s financial leverage and is not expected to affect the operating performance. TRIS Rating therefore affirms both the company rating and the rating of NATION’s Bt1,000 million senior debentures (NMG092A) at “BBB” with “stable” outlook -- End
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Copyright 2008, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemiNN, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.