24 May 2019, Friday | 04:18am

Bumi Armada refinances debts, plans for vessels sale


KUALA LUMPUR: Bumi Armada Bhd has refinanced US$660m of its short-term debts to improve its balance sheet and is looking to sell some vessels.

In a statement today, Bumi Armada said it has refinanced its unsecured term loans of US$380 million and revolving credit facilities of US$280 million into a single facility consisting of two tranches of US$260 million and US$400 million, repayable over two and five years, respectively.

“The refinancing of the short-term corporate debt alleviates one of the group’s main current exposures. The new facility better aligns the corporate debt profile with the cash flow profile of the Group’s main floating production and operation (FPO) vessels business,” said Bumi Armada executive director and chief executive officer Leon Harland.

He added that the group must now focus on maximising its revenue while continuing to manage its operational costs, as well as to find additional value via asset monetisation or other structural improvements.

“As part of this, the offshore marine services assets together with certain FPO vessels which are idle will be disposed of assuming commercially acceptable sale terms can be obtained," he said.

"Surplus funds from operations and part of the proceeds from certain strategic initiatives including monetisation of assets and new project financing will be used to repay the loans,” Harland added.



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