Medco gets $120 million loan to acquire Novus
Wednesday, May 26 2004 - 05:14 PM WIB
Medco was also armed with $169 million worth of cash to help finance the proposed takeover which totalled up to A$350 million ($248 million), the company said in a statement.
"A binding facility agreement has been signed by Medco and UOB, pursuant to which UOB has agreed to provide the $120 million facility," the statement said.
Medco has raised its bid to $1.90 a share to remain in the contest for Novus, topping rival Sunov Petroleum Ltd Pty's offer at $1.85 cents. Sunov is led by Novus Chief Executive Bob Williams and Hong Kong's Crosby Capital Partners.
Medco was also ready with alternative external funding sources which included a possible 1.8 trillion rupiah ($194.7 million) bond issue to help refinance Novus' debt which may have to be repaid due to a change in ownership, the statement said.
"Medco is currently in negotiations with an international bank in relation to a possible loan facility which if finalised could be used by the Novus Group to assist it to pay the Novus debt amount should that be required," it said.
Novus' debt which may need to be repaid because of the take over stands at $120.7 million, the statement said.
On Monday the chief of Indonesia's main bond exchange said Medco had signed a preliminary contract to issue 1.8 trillion rupiah in bonds to finance a business expansion.
Medco is 85 percent owned by New Links, which is in turn owned by three shareholders: the Panigoro family, Thai upstream oil and gas firm PTT Exploration and Production PCL and Credit Suisse First Boston.(*)