JAKARTA – Pinnacle Company Ltd (PCL) will now exercise an interest rate on a loan given to PT Toba Pulp Lestari Tbk (INRU) after growing optimism regarding the financial recovery of said subsidiary. This loan restructuring is an addendum of the loan facility agreement worth USD 40 million, which was signed on December 21, 2021.
In the information disclosure quoted Monday (19/9), Jandres Halomoan Silalahi, Director of Toba Pulp Lestari, claimed that applying interest rate on loans will emit a positive stigma to shareholders. “The estimated amount of interest generated from said transaction is USD 6.49 million,” he revealed.
According to Silalahi, INRU will also be benefitted from requesting a loan to PCL instead of banks, as the interest rate is set to LIBOR of 12 M + 3%, and the tenor is set to 9 years with a grace period of 3 years. The payment may be installed until 2029 without any collateral or financial covenants included.
For comparison, receiving facility from banks may burden INRU with an interest rate of 4.27% per annum. The facility will be a rollover working capital credit facility and three years of investment credits. The grace period will be set to 2 years, plus an upfront fee of 0.5% to 1% and an annual fee of 0.25% to 1%. Furthermore, there may be collateral fees, including financial covenants.
PCL currently controls 92.42% of INRU. The transaction of interest rate application is valued higher than 20% of the company’s equity of USD 153.87 million reported in December 2021. (LK/ZH)