PT Tower Bersama InfrastructureTbk (TBIG) Announces its Closing of a USD375 million Revolving Credit Facility
Posted on 2nd July 2019
JAKARTA, 2 July 2019 – PT Tower Bersama Infrastructure, Tbk. ("TBIG") executed USD 375 million of bank loan facilities, its lowest cost and longest maturity Revolving Credit Facilities (“RCF”) to date.
This new USD 375 million RCF has a bullet maturity of 5 years and 6 month and is priced at Libor plus 175 basis points. This fully executed USD 375 million RCF will be used to prepay our existing USD 400 million (Facility A) term loan. The new USD 375 million RCF received robust demand, confirming that TBIG’s lenders continue to strongly support the growth of the business.
Total gross debt as of 31 March 2019, valuing USD loans at their hedged exchange rate, was Rp19,887 billion and gross senior debt was Rp12,700 billion while cash balances were Rp235 billion, resulting in net debt of Rp19,652 billion and net senior debt of Rp12,465 billion. Using the first quarter 2019 annualized EBITDA, the net senior debt to EBITDA ratio is 3.2x, giving TBIG ample borrowing headroom based on the financial covenants of not more than 5.0x net senior debt to annualized monthly EBITDA at the bank level.
Hardi Wijaya Liong, CEO of TBIG, remarked, “We have an extremely strong debt structure – fully hedged, long term debt and ample committed undrawn availability. We have the flexibility to continue to grow organically, finance acquisitions, refinance debt and grow shareholder return initiatives. The impact of this latest deal is to lengthen the average tenor of our debt structure.”
Helmy Yusman Santoso, CFO of TBIG commented, “Over the last four years, we have successfully accessed both the bank and bond markets at consistently lower pricing and with longer tenors. The competitive pricing of our debt facilities, on an unsecured basis, reflects the low credit risk and our lenders’ comfort in our business.
“As a tower company, we build long life assets but only when we have long term, guaranteed contractual revenue from highly rated telecom operators. We maintain our prudent hedging strategy by using life-of-debt derivative hedging instruments. The certainty of our contracts dramatically reduces the risk of the cash flows, which our sophisticated creditor group understands,” Helmy added.
About PT Tower Bersama Infrastructure Tbk:
PT Tower Bersama Infrastructure Tbk (“TBIG”), is a provider of telecommunications infrastructure for the placement of BTS by telecommunications operators in Indonesia.
TBIG is publicly listed on the Indonesian Stock Exchange and is majority owned by Saratoga Group and Provident Capital.
For more information contact:
Helmy Yusman Santoso – Tower Bersama Group
Telp. (62-21) 2924-8900