Adaro obtains $1b loan for refinancing activities
Thursday, August 28 2014 - 12:48 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk said its wholly owned subsidiary PT Adaro Indonesia has completed a new unsecured amortizing term loan facility of US$1 billion.
?We received total commitments of $9.1 billion, 9.1x oversubscribed, from a group of 14 international banks. Combined with the internal cash balance, we plan to use the proceeds to redeem our $800 million guaranteed senior notes issued in October 2009 and to refinance the outstanding loan of the $750 million loan facility signed in July 2011,? the company said in a press release Wednesday.
Adaro said that obtaining the new facility is in line with its strategy to maintain a strong capital structure and a solid balance sheet. This new seven-year facility will further improve the company?s debt maturity profile, financial flexibility and enable it to lower average cost of debts.
?Despite market headwinds, we obtained a strong interest and support from lenders as we maintain our profitability and healthy capital structure. We continue to focus on operational excellence, cost efficiency, capital discipline and remain on track to achieve the guidance we set at the beginning of the year as well as deliver on our long term strategies,? said David Tendian, Adaro Energy?s Director and Chief of Financial Officer.
Editing by Reiner Simanjuntak