PT Tower Bersama Infrastructure Tbk US$300 million 5 Year Notes Offering
Posted on 14th January 2021
JAKARTA, 14 January 2021 – PT Tower Bersama Infrastructure Tbk. (“TBIG” or the “Issuer”) announced that it has priced its US$300 million aggregate principal amount 2.75% Senior Unsecured Notes due 2026 (the “2026 Notes”).
The 2026 Notes have been assigned a BBB-rating by Fitch Ratings and will be general unsecured obligations of the Issuer, pari passu in right of payment with all existing and future unsecured senior indebtedness of the Issuer, senior in right of payment to any future subordinated indebtedness of the Issuer, and effectively subordinated to secured indebtedness of the Issuer to the extent of the value of the assets serving as security therefor and to all liabilities (including trade payables) of each subsidiary of TBIG that does not guarantee the 2026 Notes.
The offering of the 2026 Notes is expected to close on January 20, 2021, subject to customary closing conditions.
The net proceeds of the 2026 Notes, after deducting underwriting fees and commissions and other estimated fees and expenses payable in relation to the issuance of the 2026 Notes, will be approximately US$296.4 million.
TBIG intends to use the net proceeds to partially refinance the outstanding indebtedness under the US$375 million revolving loan facility (the “2019 RLF”), the US$100 million revolving loan facility (the “Facility B”) and the US$200 million revolving loan facility (the “2017 RLF”). Amounts refinanced under 2019 RLF, Facility B and the 2017 RLF will be available and can be reborrowed.
As of September 30, 2020, TBIG and its subsidiaries’ (the “Group”) gross debt using the balance sheet rate and cash and cash equivalents was Rp. 25,119 billion (US$1.7 billion) and Rp. 574 billion (US$38.5 million).
As of September 30, 2020 and after giving effect to the issuance and sale of the notes and the application of the net proceeds therefrom, the Issuer’s Subsidiaries (excluding TBG Global Pte. Ltd.) would have had gross debt using the balance sheet rate of Rp.7,216,785 million (US$483.8 million) including lease liabilities — vehicles, lease liabilities — right of use assets and indebtedness under the 2017 RLF, the Rp.150,000 million revolving credit facility (the “2018 RCF”), the 2019 RLF and the Credit Facilities.
As of September 30, 2020, our committed and undrawn facilities under the 2017 RLF, the 2018 RCF, the 2019 RLF and the Credit Facilities amounted to US$209.0 million, and as adjusted to take into account the issuance of the 2026 Notes and the application of our net proceeds from this offering, our committed and undrawn facilities under the 2017 RLF, the 2018 RCF, the 2019 RLF and the Credit Facilities would amount to US$505.4 million, which will be available and can be reborrowed
The 2026 Notes will be listed on the Singapore Exchange (SGX) and in-principle approval for the listing and quotation of the 2026 Notes on the Official List of the SGX has been obtained. Admission of the 2026 Notes to the Official List of the SGX is not to be taken as an indication of the merits of the 2026 Notes or the Issuer. The 2026 Notes were not offered or sold in the United States. The 2026 Notes were offered to non-US persons outside the United States pursuant to Regulation S under the U.S. Securities Act of 1933, as amended. The Issuer does not intend to register any portion of the offering of the 2026 Notes in the United States or to conduct a public offering of the 2026 Notes in the United States. In Singapore, the 2026 Notes were offered to institutional and other investor pursuant to exemptions under Sections 274 and 275 of the Securities and Futures Act, Chapter 289 of Singapore.
About PT Tower Bersama Infrastructure Tbk:
PT Tower Bersama Infrastructure Tbk is a provider of telecommunications infrastructure for the placement of BTS by telecommunications operators in Indonesia. TBIG is publicly listed on the Indonesian Stock Exchange and is majority owned by Saratoga Group and Provident Capital.
For more information contact:
Helmy Yusman Santoso – Tower Bersama Group
Telp. (62-21) 2924-8900