Friday , August 23 2019
Breaking News
Home / International Customs / Malaysia / Bumi Armada refinances corporate debt
Bumi Armada refinances corporate debt

Bumi Armada refinances corporate debt

KUALA LUMPUR: Bumi Armada Bhd has refinanced its unsecured term loans of US$380mil (RM1.57bil) and revolving credit facilities of US$280mil (RM1.16bil) into a single facility consisting of Tranche 1 facility of US$260mil, and Tranche 2 facility of US$400mil (the loans).

In a statement Wednesday, the offshore energy facilities and service provider said the loans would be repayable over two and five years respectively, from the closing date of the facility agreement.

The closing of the facility agreement is subject to the satisfaction of certain conditions precedent which are procedural in nature, it added.

“The refinancing of the short-term corporate debt alleviates one of the group’s main current exposures. The new facility better aligns the corporate debt profile with the cash flow profile of the Group’s main FPO business,” executive director and chief executive officer Leon Harland said.

He added that the group must now focus on maximising its revenue while continuing to manage its operational costs, as well as to find additional value via asset monetisation or other structural improvements.

“As part of this, the offshore marine services assets together with certain FPO vessels which are idle will be disposed of assuming commercially acceptable sale terms can be obtained. Surplus funds from operations and part of the proceeds from certain strategic initiatives including monetisation of assets and new project financing will be used to repay the loans,” he said.