PT Tower Bersama Infrastructure Tbk US$400 million 5.5 Year Notes Offering
Posted on 27th October 2021
JAKARTA, 27 October 2021 – PT Tower Bersama Infrastructure Tbk. (“TBIG” or the “Issuer”) announced that it has priced its US$400 million aggregate principal amount 2.80% Senior Unsecured Notes due 2027 (the “2027 Notes”).
The 2027 Notes have been assigned a BBB-rating by Fitch Ratings Ltd. 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.
The offering of the 2027 Notes is expected to close on November 2, 2021, subject to customary closing conditions.
The net proceeds of the 2027 Notes, after deducting underwriting fees and commissions and other estimated fees and expenses payable in relation to the issuance of the 2027 Notes, will be approximately US$396.0 million.
TBIG intends to use the net proceeds to partially refinance the outstanding indebtedness under the US$100 million revolving loan facility (“Facility B”), the US$200 million revolving loan facility (the “2017 RLF”), and the US$375 million revolving loan facility (the “2019 RLF”). Amounts refinanced under Facility B, the 2017 RLF and the 2019 RLF will be available and can be reborrowed.
As of June 30, 2021, TBIG and its subsidiaries’ total borrowings, and cash and cash equivalents, was Rp.28,505 billion (US$2.0 billion) and Rp.894 billion (US$61.7 million), respectively.
As of June 30, 2021 and after giving effect to the issuance and sale of the 2027 Notes and the application of the net proceeds therefrom, the Issuer’s subsidiaries would have had gross debt of Rp.6,817,479 million (US$470.3 million) including lease liabilities — vehicles, lease liabilities — right of use assets and indebtedness under the 2017 RLF, PT Gihon Telekomunikasi Indonesia Tbk’s Rp.150 billion revolving credit facility (the “2018 RCF”), the 2019 RLF, PT Bank QNB Indonesia Tbk’s Rp.50 billion term loan facility (the “2020 TLF”), the US$275 million revolving loan facility (the “2021 RLF”) and our US$1.0 billion credit facilities (the “Credit Facilities”).
As of June 30, 2021, our committed and undrawn facilities under the 2017 RLF, the 2018 RCF, the 2019 RLF, the 2020 TLF, PT Bank UOB Indonesia’s Rp.200 billion revolving credit facility (the “2020 RCF”), the 2021 RLF and the Credit Facilities amounted to US$155.7 million, and as adjusted to take into account the issuance of the 2027 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, the 2020 TLF, the 2020 RCF, the 2021 RLF and the Credit Facilities would amount to US$551.7 million, which will be available and can be reborrowed.
The 2027 Notes will be listed on the Singapore Exchange Securities Trading Limited (the “SGX”) and approval in-principle for the listing and quotation of the 2027 Notes on the Official List of the SGX has been obtained. Admission of the 2027 Notes to the Official List of the SGX is not to be taken as an indication of the merits of the 2027 Notes or the Issuer. The 2027 Notes were not offered or sold in the United States. The 2027 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 2027 Notes in the United States or to conduct a public offering of the 2027 Notes in the United States. In Singapore, the 2027 Notes were offered to institutional and other investors pursuant to exemptions under Sections 274 and 275 of the Securities and Futures Act, Chapter 289 of Singapore. This press release is not an offer for sale of the securities in Indonesia. The 2027 Notes may not be offered or sold: (i) in Indonesia to Indonesian citizens and institutions or foreign citizens and institutions; or (ii) outside Indonesia to Indonesian citizens and institutions. The Issuer does not intend to register any portion of the offering in Indonesia or to conduct public and private offerings of the securities in Indonesia.
About PT Tower Bersama Infrastructure Tbk:
PT Tower Bersama Infrastructure Tbk (“TBIG”), 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
Telp. (62-21) 2924 8900