Energy Absolute Public Company Limited (SET: EA) stated that the company has been banking with 11 institutions and actively engaged with its creditors in discussions regarding recent developments and its financial standing.
The management of EA has expressed confidence in its ability to successfully roll over its debentures totaling 5.5 billion baht, set to mature by the end of 2024, with ample funding sources and creditor support in place to repay bondholders.
Somphote Ahunai, CEO of EA, has acknowledged that the book build process for the debentures indicates a potential necessity to offer a higher interest rate than initially anticipated, possibly surpassing the rates of similar-rated debentures issued by other companies. In the event that investor subscription falls short, EA plans to turn to bank loans as a supplementary funding option.
Despite this, the banking sector continues to categorize its loans to EA as performing loans, due to its robust operating cash flow and a net debt-to-equity ratio of 1.4x as of the first quarter of 2024.
The CEO affirmed that the company has no plan to raise capital and is ready to oversubscribe in case the right offering on Nex Point Public Company Limited (SET: NEX) falls short.
EA has been one of the top securities on a short selling list, causing the share price to plummet and resulting in a forced sell on Mr. Somphote. He said that it had bottomed out.
