CPO producer PT BW Plantation Tbk (BWPT) intends to refinance high cost bank loan facilities obtained from Citibank NA and PT Bank Artha Graha Internasional Tbk by using Rp210 billion proceed from a maximum Rp700 billion bonds issuance scheduled on November 11 2010.
In a bond issuance prospectus, BW Plantation will refinance Rp144 billion loan secured from Citibank NA charging a 11% annual interest rate on January 17 2011.
BW Plantation also plans to refinance Rp12.47 billion and US$4.81 million loans of its subsidiary dubbed PT Adhyaksa Dharmasatya (ADS) received from Bank Artha Graha at the end of this year. The rupiah loan to Bank Artha Graha charges 14.50%-15.50% annual interest rate and the US$ denominated facility charges 9.50%-10% interest per year.
BW Plantation aims to use 60% of the bonds proceed or Rp420 billion to bankroll planting program at subsidiaries such as PT Satria Manunggal Sejahtera (SMS), PT Sawit Sukses Sejahtera (SSS), PT Agrolestari Kencana Makmur, and PT Wana Catur Jaya Utama (WJU) in 2011 and 2012. The remaining proceed will be utilized for working capital in BW Pantation.
BW Plantation has picked three lead underwriters PT Danareksa Sekuritas, PT BNI Securities, and PT Kresna Graha Sekurindo Tbk.
Disclosure: No position at the stock mentioned above.
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