KUALA LUMPUR (April 24): Bumi Armada Bhd has refinanced its unsecured term loans of US$380 million (RM1.57 billion) and revolving credit facilities of US$280 million (RM1.16 billion) into a single facility consisting of Tranche 1 facility of US$260 million, and Tranche 2 facility of US$400 million (the loans).
In a statement today, the offshore energy facilities and services provider said the loans will be repayable over two and five years respectively, from the closing date of the facility agreement.
Bumi Armada chief executive officer Leon Harland said the refinancing of the short-term corporate debt alleviates one of the group's main current exposures.
He said the new facility better aligns the corporate debt profile with the cash flow profile of the group's main floating production and operation (FPO) business.
"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.
At the midday break, Bumi Armada rose 5% or 1 sen to 21 sen with 132.08 million shares traded.
https://www.theedgemarkets.com/article/bumi-armada-refinances-corporate-debt
