Malaysian offshore production and support services provider Bumi Armada has refinanced its unsecured term loans of $380m and revolving credit facilities of $280 into a single facility consisting of Tranche 1 facility of $260m, and Tranche 2 facility of $400m.
The new loans are 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 FPO business,” said Bumi Armada’s executive director and chief executive officer Leon Harland.
Harland 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. 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 said.