JAKARTA. PT Cikarang Listerindo Tbk (POWR) would offer Global Notes of USD 600 million at max with a 15-year tenor. These notes are going to be listed on Singapore Stock Exchange (SGX-ST).
POWR would apply a fixed interest rate of a maximum of 5.75% per year and pay the exact amount every six months. This information is laid out in the official announcement released by the company.
The funds to be raised in the notes issuance would be used to pay back half or the entire notes issued by its subsidiary, Listrindo Capital BV (LCBV), on September 14, 2016 (including interests and other costs) of USD 550 million. For the record, on September 25, 2019, LCBV had reassigned its entire rights and obligations over the 2026 Notes to its parent company.
The company hopes that the new release of Notes could cover the previous notes maturing in 2026. Moreover, the company wishes to increase liquidity and solidify the general financing needs as the recent notes have a longer maturity date.
The upcoming notes are equivalent to 89.48% of total equity, thus entering the material transaction category. It means that the issuance of these notes entails approval from the Extraordinary General Shareholders Meeting scheduled for October 15, 2021. (AM/ZH)