EMP gets refinancing to lower interest cost
Tuesday, January 5 2016 - 08:50 AM WIB
The company announced on Tuesday, Jan. 5, 2016 that the loan facility has a five years tenor and interest rate of LIBOR + 6.8 percent per annum. EMP and PT Tunas Harapan Perkasa (EMP?s subsidiary) act as the guarantors in this agreement.
The new loan facility is subject to a few conditions precedent to be completed. The loan facility will be used to settle the maturing US$53 million loan from the Pro Strategic which bears 20 percent interest rate per annum. Such loan refinancing would reduce EMP?s interest cost quite significantly.
?The loan refinancing can save interest cost of up to US$6.3 million in year 2016. This cost saving will have positive impact on EMP?s future financial results,? EMP?s CEO Imam Agustino said in Jakarta.
Didit Ratam, EMP?s Director, added, ?In the past 24 months, we have been able to reduce our outstanding loan by over US$ 300 million. In addition, we have successfully refinanced a few loans with the new ones at lower rates. Consequently, EMP is expected to show better liquidity ratios going forward.?
| Creditor | Loan Size (Dec 2013) | Loan Size (Dec 2014) | Loan Size (Sep 2015) | Rate | Maturity/ Tenor |
| Short Term Loans | |||||
| Pro Strategic Investor Ltd.* | $102,019,154 | $74,759,345 | $53,040,584 | 20% | Dec-2015 |
| PST Finance Ltd. | $61,950,000 | $67,150,715 | $62,556,748 | LIBOR + 20% | Dec-2015 |
| Long Term Loans | |||||
| Syndicated loan arranged by BAML (ONWJ project) | $203,000,000 | $152,490,730 | $132,762,878 | LIBOR + 6% | Sep-2016 |
| Capex carry loan from Mitsubishi & Japex (Kangean project) | $339,984,658 | $193,148,794
|
$154,667,256 | LIBOR + 4.25% | Jun-2017 |
| Total | $706,953,812 | $487,549,584 | $403,027,466 | ||
| Creditor | Loan Size | Rate | Maturity/Tenor |
| Intesa Sanpaolo SpA & Britannic Strategies Limited * | $60 Mn | LIBOR +6.8% | Dec-2020 |
* Intesa Sanpaolo SpA & Britannic Strategies Limited loan facility (LIBOR + 6.8%) is used to settle Pro Strategic loan (20%)
Editing by Benget Besalicto ST