Jan 21, 2011

Garuda to arrange US$120 mio loan

Indonesian flag carrier PT Garuda Indonesia Tbk, the country's biggest airline, is arranging a US$120 million two-year club loan, according to a person familiar with the matter.
Citigroup Inc and UBS AG are arranging the loan, which will pay a margin of 425 basis points more than the London interbank offered rate.
During the IPO, Garuda aims to raise Rp7.02 trillion-Rp10.29 trillion proceed by selling 9.36 billion shares, consisting of 7.43 billion shares of new B series and 1.93 billion shares of old B shares owned by PT Bank Mandiri Tbk (BMRI).
The airlines set the IPO price range of Rp750-Rp1,100 per share. PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas are the lead underwriter of the IPO, helped by two international arrangers Citi and UBS Securities.
According to the IPO prospectus, about 80% of the IPO proceed of new shares issuance will be used by Garuda to develop new fleets such as 10 units of B737-800 NG, 10 units of B777, six units of A330-200, five units of narrow body for Citilink, and five units of Sub-100 types. Garuda will utilize 20% of the proceed to support working capital.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: