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Pan Brothers to buyback bonds

02 October 2018 09:38

JAKARTA - PT Pan Brothers Tbk (PANS) requested a buyback of bonds that were offered a maximum of US$ 40 million.

Corporate Secretary of PT Pan Brothers Tbk (PBRX) Iswardani said the action was carried out because of the company's opportunity to reduce debt and the availability of funds.

According to him, if this offer gets an agreement, it will improve the company's cost structure and balance sheet. "In terms of the amount, we open up to US$ 40 million," he said as quoted by Bisnis, Monday (1/10).

Director of Pan Brothers Fitri Ratnasari Hartono said the total offering of the principal was at least US$ 200,000 for each bond holder. As for the amount in US dollars paid for every multiple of US$ 1,000, the principal value of bond purchased under the offer will be determined in accordance with the memorandum of tender offer.

"The purpose of this offer is to actively manage the balance sheet of the company's liabilities and to achieve a lower debt cost burden," he said.

This tender offer was conducted related to the senior debt with a 7.625% coupon valued at US$ 200 million that will due in 2022, issued by PB International B.V. PB International is a subsidiary of the company which is entirely owned by Pan Brothers.

This offer will end on October 19, 2018 at 12.00 London time and the pricing will be made on October 22, 2018. The completion of the offer will be conducted on October 25, 2018 or before October 25.

According to Hartono, consumers abroad make additional orders so that the company's performance in terms of sales is believed to increase. In addition, the company also increased production capacity by optimizing the performance of its subsidiaries, by providing an injection of Rp 246.5 billion to its subsidiary namely PT Eco Smart Garment Indonesia. (AM/LM)

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