Indonesia's PT Berlian Laju Tanker Tbk , whose subsidiaries include Southport, Conn., headquartered Chembulk Tankers, says it has secured commitments from six leading commercial banks to provide $685 million in a new landmark term facility.
The facility is secured by 40 of the company's existing ships and three ships that are under construction with a maturity of five years and a repayment profile of 10 years. The facility also has a debt service coverage covenant which is not only based on cash flows but also based on liquidity amount, allowing the company enhanced flexibility.
PT Berlian Laju tanker will use the proceeds from the facility to prepay 10 existing loan facilities with an outstanding amount of $593 million and to fund all of remaining payments due on the three ships under construction, with the remainder increasing liquidity.
The facility will reduce the company's principal instalments in the first year by 67 percent and will cumulatively reduce its debt instalments by $166.9 million over the next three years. The increased flexibility on the debt service covenant will also help assure continued compliance with all of the financial covenants of the facility.
In addition, the facility will fund 81 percent of all of the company’s capital requirements for its newbuildings in 2011.
The facility is the largest term credit facility BLT has ever completed, and is one the largest non•project long term corporate credit facility ever extended to an Indonesian company.
The company’s President Director, Widihardja Tanudjaja, said, “the provision of this credit facility not only by our existing banks but also a strong bank new to us is recognition of our proven track record and the long term prospects of the company supported by longstanding client relationships, contract focused strategy and a young and modern fleet. Combined with additional initiatives which are at advanced stages, chemical tanker market fundamentals which are by many measures the strongest in the last six years and the full implementation of the Indonesian shipping regulation which will strengthen our home market base, we look forward to 2011 as a turning point for PT Berlian Laju Tanker Tbk.”
Banks providing the facility are:
DnB NOR Bank ASA, Singapore Branch
Nordea Bank Finland Plc, Singapore Branch
Standard Chartered Bank
ING Bank N.V., Singapore Branch
NIBC Bank Ltd.
BNP Paribas, Singapore Branch
DnB NOR is the Facility Agent and Security Trustee.
February 20, 2011