JAKARTA. PT Buana Lintas Lautan Tbk (BULL), a shipping company, announces the issuance of Global Senior Notes of USD 400 million in Singapore Stock Exchange.
Quoting the information disclosure submitted yesterday (5/9), the value of the senior notes, whose worth is equivalent to IDR 5.69 trillion (using IDR 14,200/USD rate), exceeds the limit of a material transaction stated in POJK 17/2020. It equals 114.28% of BULL’s total equity reported in the Consolidated Financial Report of USD 350.03 million, thus surpassing the 50% limit capped by the said regulation.
The management claims that the proceeds of the notes issuance would be utilised to pay several of the company and its subsidiaries’ debts, thus increasing its liquidity and extending the maturity date of the debts. Furthermore, BULL claims that this transcation could further improve its capital structure and solidify its financial condition.
The principal of the notes would be paid in full at once on the maturity date, which falls five years after the issuance of the said notes or other period agreed upon by the related parties. Then, the interest rate and its payment would be decided later in the addendum of the information disclosure. The company plans to issue this extra part by at least two working days before the General Shareholders Meeting that would discuss the global notes issuance. Meanwhile, the said meeting is said to be conducted on October 11, 2021, entering the last quarter of the year. (AM/ZH)