Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

We view Gajah Tunggal's proposed tender offer and Notes issuance positively, as these will extend the company’s debt maturity profile. More importantly, the smaller issuance size should reduce future refinancing risks, when the Notes come due in 2026. The transactions should also reduce FX risks, as there will be a more balanced mix of USD and IDR debt in the capital structure. We also view positively the amortising nature of Gajah Tunggal's secured credit facilities, which might help contain the company's debt level going forward. The proposed Notes will have a smaller collateral pool than the existing Notes. That said, S&P estimates that the value of the collateral is worth c. 1.6x of the amount for the proposed Notes.  We expect the proposed issuance to succeed, given the reduced size (compared to the existing ‘22s), improved post-issuance capital structure, as well as the company’s improved leverage in FY 2020. We see fair pricing for the proposed 5NC2 Notes at 8.0-8.5%.

  We view Gajah Tunggal's proposed tender offer and Notes issuance positively, as these will extend the company’s debt maturity profile. More importantly, the smaller issuance size should reduce future refinancing risks, when the Notes come due in 2026. The transactions should also reduce FX risks, as there will be a more balanced mix of USD and IDR debt in the capital structure. We also view positively the amortising nature of Gajah Tunggal's secured credit facilities, which might help contain the company's debt level going forward.   The proposed Notes will have a smaller collateral pool than the existing Notes. That said, S&P estimates that the value of the collateral is worth c. 1.6x of the amount for the proposed Notes.    We expect the proposed issuance to succeed, given the reduced size (compared to the existing ‘22s), improved post-issuance capital structure, as well as the company’s improved leverage in FY 2020. We see fair pricing for the proposed 5NC2 Notes at 8.0-8.5%. 

Gajah Tunggal - Event Flash - Proposed Issuance Of 5NC2 Notes - Lucror Analytics