KUALA LUMPUR: Bumi Armada Bhd subsidiary, Armada TGT Ltd, has signed a US$341.1 million (RM1.07 billion) facility agreement with seven international and local financial institutions.
The financing will used for capital expenditure related to its floating production storage and offloading (FPSO) vessel, Armada TGT 1, that was deployed in the Te Giac Tran Field, offshore Vietnam.
The Armada TGT 1 was completed on schedule and it achieved first oil on Aug 22, 2011, with final acceptance received from the client on Nov 30.
It is worth noting that the financing facility has come at the end of the conversion of the FPSO Armada TGT 1, and while the vessel is already in operation.
“We used bridging loans to fund the FPSO capex. These were short-term loans that we had to repay within one year’s time, so now we are replacing them with long-term financing of seven years (with the US$341.1 million facility),” said Bumi Armada chief financial officer Shaharul Rezza Hassan.
He added that the facility will only raise Bumi Armada’s gross gearing level to 0.9 times from 0.8 currently, as it is a replacement of existing bridging loans instead of a new loan.
Sumitomo Mitsui Banking Corp is the coordinating bank, mandated lead arranger, facility agent, security agent, and account bank for the US$341.1 million facility, with CIMB Bank Bhd, ING Bank NV, Maybank Investment Bank Bhd, OCBC Bank (M) Bhd, RHB Investment Bank Bhd and The Bank of Tokyo-Mitsubishi UFJ Ltd as mandated lead arrangers.
As at end-September, Bumi Armada had total short-term debt of RM846.26 million (which includes RM468.85 million of bridging loans) and total long-term debt of RM1.837 billion, translating to total borrowings of RM2.683 billion. Its cash reserves stood at RM992.83 million.
Bumi Armada closed six sen lower to RM3.99 yesterday. Its stock has climbed 31.7% from its IPO price of RM3.03 on July 2, 2011.
This article appeared in The Edge Financial Daily, December 9, 2011.
The financing will used for capital expenditure related to its floating production storage and offloading (FPSO) vessel, Armada TGT 1, that was deployed in the Te Giac Tran Field, offshore Vietnam.
The Armada TGT 1 was completed on schedule and it achieved first oil on Aug 22, 2011, with final acceptance received from the client on Nov 30.
It is worth noting that the financing facility has come at the end of the conversion of the FPSO Armada TGT 1, and while the vessel is already in operation.
“We used bridging loans to fund the FPSO capex. These were short-term loans that we had to repay within one year’s time, so now we are replacing them with long-term financing of seven years (with the US$341.1 million facility),” said Bumi Armada chief financial officer Shaharul Rezza Hassan.
He added that the facility will only raise Bumi Armada’s gross gearing level to 0.9 times from 0.8 currently, as it is a replacement of existing bridging loans instead of a new loan.
Sumitomo Mitsui Banking Corp is the coordinating bank, mandated lead arranger, facility agent, security agent, and account bank for the US$341.1 million facility, with CIMB Bank Bhd, ING Bank NV, Maybank Investment Bank Bhd, OCBC Bank (M) Bhd, RHB Investment Bank Bhd and The Bank of Tokyo-Mitsubishi UFJ Ltd as mandated lead arrangers.
As at end-September, Bumi Armada had total short-term debt of RM846.26 million (which includes RM468.85 million of bridging loans) and total long-term debt of RM1.837 billion, translating to total borrowings of RM2.683 billion. Its cash reserves stood at RM992.83 million.
Bumi Armada closed six sen lower to RM3.99 yesterday. Its stock has climbed 31.7% from its IPO price of RM3.03 on July 2, 2011.
This article appeared in The Edge Financial Daily, December 9, 2011.
