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November 20, 2007 |
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G-STEEL: Expects Annual Revenues to Climb to THB100 Bil. in 2007 G Steel PCL expects annual revenues to grow to THB100 billion and its production capacity to rise to 5.9 million by 2009, G Steel President Ryuzo Ogino told the Bangkok Post. The company also plans to increase its holdings in Nakornthai Strip Mill to 33% in March next year. Its ongoing consolidation with NSM is expected to be completed within the next one or two years, the Post adds. According to G Steel's founder and chief executive officer, Dr. Somsak Leeswadtrakul, combined revenues of both the company and NSM are expected to be at THB38 billion this year. G Steel also expects to increase production capacity to 3.4 milion tonnes within two years, Dr. Somsak said, and added that increased production capactiy will "boost [its] competitiveness in the global market and also reduce operating costs as [G Steel] prepare[s] for market liberalisation over the next two years." G Steel PCL announces the refinancing agreement entered into by its subsidiary, Oriental Access Co. Ltd., for its US$120-million loan facility with foreign institutions for its investment in Nakornthai Strip Mill PCL. The loan has matured on October 30 and was temporarily extended by the lenders until today. Under the terms and conditions of the refinancing agreement, OA is required to prepay US$20 million under the bridge loan facility, which amounts to US$100 million. The facility has a tenor of up to 30 months or until April 30, 2010, whichever is earlier. The refinancing includes an amortization schedule with semi-annual repayments, which will be in compliance with the EBITDA and the existing covenants of the outstanding G Steel Senior Unsecured Notes. The facility has an interest of 4.5% of the principal amount plus the Singapore Interbank Offered Rate. Headquartered in Bangkok, G Steel Public Company Ltd -- http://www.g-steel.com/ -- produces hot rolled coils (HRC) in different grades and gauges. G Steel is a stand-alone operating entity with no related group companies. On November 1, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on G Steel Public Co. Ltd. to 'B-' from 'B+', and removed it from CreditWatch, where it was placed with negative implications on Oct. 4, 2007. The outlook is negative. Standard & Poor's also lowered the long-term issue credit rating on G Steel's US$170 million senior unsecured notes to 'B-' from 'B+' and removed it from CreditWatch, where it was placed on Oct. 4, 2007, with negative implications. On November 1, 2007, Moody's Investors Service lowered the corporate family rating and senior unsecured bond rating of G Steel Public Company Limited to B3 from B2. The outlook for both ratings is negative. The company is currently listed under the "Non-Performing Group" sector of the Stock Exchange of Thailand. |
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