Adaro makes early repayment of debt notes
Friday, October 24 2014 - 04:17 AM WIB
IDX-listed coal miner PT Adaro Energy Tbk announced Thursday that on October 22, 2014 its indirectly wholly-owned subsidiary, PT Adaro Indonesia (AI), exercised its call option for full redemption of its US$800 million Guaranteed Senior Notes issued on October 22, 2009.
The repayment of the Notes was funded by a portion of AI?s $1 billion loan facility, based on Facility Agreement dated August 25, 2014, and internal cash, Adaro said in a statement.
The amortizing term loan facility has a lower cost of funds than the Notes, it said.
By repaying the Notes with the combination of the loan facility and internal cash, Adaro will further extend its debt maturity profile, lower its cost of funds, and maintain its strong capital structure, the company explained. This will save Adaro up to US$40 million per year in interest expense.
Adaro?s Director and Chief Financial Officer, David Tendian, said ?the refinancing activity is in line with our strategy to maintain strong balance sheet and flexible liquidity. In this challenging coal price environment, we will focus on capital preservation, cost efficiency, and deleveraging. We remain on track to achieve the guidance for this year as well as deliver on our long term strategies.?
Editing by Reiner Simanjuntak