MARC has placed its MARC-2ID/AID ratings of Premium Nutrients Berhad’s (Premium Nutrients), RM85 million Murabahah Underwritten Notes Issuance Facility/Islamic Medium Term Notes (MUNIF/IMTN) programme on MARCWatch Developing following Premium Nutrients’ proposed early redemption of the entire outstanding MUNIF/IMTN of RM45 million. The early redemption will be financed by external borrowings. Premium Nutrients expects the new term loan transaction to close by the end of December 2009. Notwithstanding the refinancing arrangement, Premium Nutrients appears to have sufficient liquidity to meet its upcoming RM15.0 million debt maturity in February 2010, given its RM41.4 million cash and cash equivalents at end-September 2009. 

For the first nine months of the year, Premium Nutrients recorded revenue of RM612.4 million and pre-tax profit of RM6.4 million. The flat overall performance was achieved on the back of lower feedstock prices. The group’s debt-to-equity ratio improved to 1.02 times mostly on account of debt repayment which included a RM9.5 million repayment under the MUNIF/IMTN programme in August 2009. Premium Nutrients remains in compliance with its financial covenants under the rated facilities. MARC expects to resolve the MARCWatch placement and withdraw its ratings by the end of the month.

Contacts:
Lee Mei Lin, 03-2090 2259/ meilin@marc.com.my;
Sabesh Parameswaran, 03-2090 2260/ sabesh@marc.com.my;
Mac Lai Yew Weng, 03 2090 2280/ mac@marc.com.my