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Bumi Armada Unit Clinches US$775 Million Financing Facility
  • Bumi Armada‘s unit Armada Kraken has secured a syndicated term loan facility and a standby letter of credit facility, of a maximum aggregate principal amount of US$775 million (RM2.9 billion).
  • The facility would be used to refinance an existing bridge loan obtained on 31 March 2014 to part-finance and reimburse all costs and expenses in relation to the acquisition and conversion of its seventh floating production, storage and offloading vessel (FPSO), Armada Kraken.
  • The facility’s final maturity will fall within eight years. It could be either the last repayment date under the agreed repayment schedule, 30 days after the expiry of the first charter period, or 160 days after the scheduled first production date, whichever is earlier.

Significance: The group will incur finance costs in respect of the facility, but the bareboat charter was expected to contribute positively to the group’s net assets and earnings.

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