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)