PT Tower Bersama Infrastructure Tbk US$350 million 5 Year Notes Offering
Posted on 14th January 2020
JAKARTA, 14 January 2020 – PT Tower Bersama Infrastructure Tbk. (“TBIG” or the “Issuer”) announced that it has priced its US$350 million aggregate principal amount 4.25% Senior Unsecured Notes due 2025 (the “2025 Notes”).
The 2025 Notes have not been assigned a rating 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 2025 Notes.
The offering of the 2025 Notes is expected to close on January 21, 2020, subject to customary closing conditions.
The net proceeds of the 2025 Notes, after deducting underwriting fees and commissions and other estimated fees and expenses payable in relation to the issuance of the 2025 Notes, will be approximately US$345.1 million.
TBIG intends to use the net proceeds to refinance all outstanding indebtedness under the US$300.0 million revolving loan facility (the “Facility B”) and to partially refinance the outstanding indebtedness under the US$200.0 million revolving loan facility (the “2017 RLF”). Amounts refinanced under Facility B and the 2017 RLF will be available and can be reborrowed.
As of September 30, 2019, TBIG and its subsidiaries’ (the “Group”) gross debt and cash and cash equivalents was Rp. 22,859,758 million (US$1,612.8 million) and Rp. 333,362 million (US$23.5 million).
As of September 30, 2019, after giving effect to (a) the repayment of Rp.628,000 million (US$44.3 million) of the Issuer’s Rupiah-denominated bonds and the Group’s incurrence of indebtedness between September 30, 2019 and January 13, 2020, and (b) issuance of the 2025 Notes and the application of the net proceeds thereof, the Group’s gross debt and cash and cash equivalents were Rp. 23,595,630 million (US$1,664.7 million) and Rp.996,302 million (US$70.2 million), respectively.
The 2025 Notes will be listed on the Singapore Exchange (SGX) and in-principle approval for the listing and quotation of the 2025 Notes on the Official List of the SGX has been obtained. Admission of the 2025 Notes to the Official List of the SGX is not to be taken as an indication of the merits of the 2025 Notes or the Issuer. The 2025 Notes were not offered or sold in the United States. The 2025 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 2025 Notes in the United States or to conduct a public offering of the 2025 Notes in the United States. In Singapore, the 2025 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