TBIG Announces its Closing of USD500 million Debt Facilities
JAKARTA, 31 March 2017 – PT Tower Bersama Infrastructure, Tbk. (TBIG) executed USD 500 million of bank loan facilities, its equal lowest cost and longest maturity Revolving Credit Facilities (RCF) to date.
USD 200 million Revolving Credit Facility
Existing relationship banks were invited to participate in a new USD 200 million RCF. This new USD 200 million RCF has a bullet maturity of 5 years and 3 months and is priced at Libor plus 175 basis points. The USD 200 million RCF received demand from existing lenders of more than USD 700 million, confirming that TBIG’s lenders continue to strongly support the growth of the business.
USD 300 million Facility B Extension
Facility B is an existing Revolving Credit Facility of USD 300 million. The maturity of Facility B has been extended, with a bullet maturity of 5 years and 3 months and is also priced at Libor plus 175 basis points. As of 31 December 2016, only USD 80 million had been drawn down from Facility B.
Total Debt as of 31 December 2016, valuing USD loans at their hedged exchange rate, was Rp17,109 billion and gross senior debt was Rp9,451 billion while the cash balance was Rp365 billion, resulting in net debt of Rp16,744 billion and net senior debt of Rp9,086 billion. Using the 4th quarter 2016 annualized EBITDA, the net senior debt to EBITDA ratio is 2.8x, giving TBIG ample borrowing headroom based on the financial covenants of not more than 5.0x net senior debt to annualized EBITDA at the bank level.
Hardi Wijaya Liong, CEO of TBIG, remarked, “Over the last three years, we have maintained our overall leverage levels at ~5x net debt to annualized EBITDA and have successfully accessed both the bank and bond markets at consistently lower pricing and with longer tenors. The competitive pricing of our debt facilities, on an unsecured basis, reflects the low credit risk and our lenders’ comfort in our business. We demonstrated robust organic growth with 11% gross tenant additions and significant shareholder returns of ~Rp.1.5 trillion in 2016 whilst reducing overall leverage from ~5.2x in Q4 2015 to ~5.1x in Q4 2016. Using these new facilities, we will continue to profitably grow the business and increase returns to shareholders.”
Helmy Yusman Santoso, CFO of TBIG commented, “We have an extremely strong debt structure – fully hedged, long term debt and ample committed undrawn availability. We have the flexibility to continue to grow organically, finance acquisitions, refinance debt and grow shareholder return initiatives. The impact of this latest deal is to lengthen the average tenor of our debt structure.”
“As a tower company, we build long life assets but only when we have long term, guaranteed contractual revenue from highly rated telecom operators. As of December 2016, 83% of our revenue is long-term contracted revenue from high quality telcom operators (Telkomsel, Indosat and XL), which provides excellent coverage for all of our future debt servicing. We maintain our prudent hedging strategy by using life-of-debt derivative hedging instruments, with further protection from USD 40 million per year of long term contracted USD revenue. The certainty of our contracts dramatically reduces the risk of the cash flows, which our sophisticated creditor group understands,” Helmy added.
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:
Corporate Secretary:
Helmy Yusman Santoso – Tower Bersama Group
Phone: (62-21) 2924 8900
Email: corporate.secretary@tower-bersama.com
Investor Relations:
Veronica Jordan
Phone: (62-21) 2924-8900
Email: veronica.jordan@tower-bersama.com
