KUALA LUMPUR: Bumi Armada Bhd announced that its wholly owned subsidiary, Bumi Armada Holdings Labuan Ltd (BAHLL), has secured syndicated facilities with a six-year tenor at an aggregate principal amount of up to US$400 million to refinance a RM1.5 billion sukuk.
The company said the facilities comprised a US$135 million conventional syndicated term loan and a US$265 million Islamic syndicated commodity Murabahah facility.
"The proceeds are to be applied inter alia, towards the full redemption of the sukuk and its related cross currency and interest rate hedge liabilities," it said in a stock exchange filing.
The facilities, which are guaranteed by Bumi Armada, were arranged by Maybank Investment Bank Bhd, RHB Bank (L) Ltd, AmInvestment Bank Bhd and Affin Islamic Bank Bhd as mandated lead arrangers and made available to BAHLL by eight participating banks.
In 2014, the unrated sukuk issuance programme was established by its wholly owned subsidiary, Bumi Armada Capital Malaysia Sdn Bhd (BACM), involving the issuance of RM1.5 billion nominal value sukuk by BACM. The sukuk has a final redemption date of Sept 4, 2024.
On Aug 15, 2024, BAHLL entered into the relevant facilities documentation with the arrangers and financiers. "Utilisation of the facilities, and the sukuk redemption, are expected to occur immediately prior to Sept 4, 2024. Bumi Armada notes that the facilities were oversubscribed," it said.