Trakindo Utama receives $120m credit facility

Trakindo Utama receives $120m credit facility

JAKARTA (JP): PT Trakindo Utama, a dealer of heavy equipment
in Indonesia, has obtained a US$120 million credit facility, to
repay its debts and to strengthen its working capital.

The company said in a statement yesterday that the credit
facility was arranged jointly by BZW Asia Limited, Chemical
Securities Ltd. and the Singapore branches of Mitsubishi Bank
Ltd. and Sanwa Bank Ltd.

They stated that the facility, which was launched on Oct. 2,
was over-subscribed and 27 banks, including the arrangers,
committed $197 million. Therefore, the company increased the
facility from the originally intended amount of $100 million to
$120 million.

The four arrangers will each allocate US$7.5 million to
finance the credit facility.

The co-arrangers -- consisting of the Singapore branches of
ABN-AMRO Bank N.V., Societe Generale and Westpac Banking Corp. --
will each allocate $5.5 million.

The other participating banks include the Singapore branches
of Commerzbank Aktiengesellschaft, Credit Suisse, Dai-Ichi Kangyo
Bank Ltd., the Mitsubishi Trust and Banking Corp., and NatWest
Markets.

They stated that the signing ceremony for the credit facility
took place on Tuesday in Singapore.

The credit facility initially comprised of a $60 million term
loan facility, which will be used to refinance Trakindo's debts
from its acquisition of PT Standard Chartered Leasing, and a $40
million revolving credit facility for working capital.

The credit will have a three-year lifetime and a direct lender
spread of 1.40 percent per annum over the Singapore Inter Bank
Offered Rate.

Trakindo Utama is the sole dealer of Caterpillar heavy
equipment in Indonesia and the third largest Caterpillar dealer
worldwide.

The company has 40 percent of the Indonesian heavy equipment
market and has established 39 branches throughout the country.
(pwn)