JAKARTA (TheInsiderStories) – Indonesia broadcasting company, PT Intermedia Capital Tbk (IDX: MDIA) plans to issue global bonds worth US$ 300 million (Rp 4.05 trillion), to refinance debt owed by parent company PT Visa Media Asia Tbk (IDX: VIVA), according to a company disclosure.
MDIA will issue the bonds, which mature within 5 years, at a maximum interest rate of 10 per cent per annum. The issue is expected to take place in March 2018.
The two entities have signed an MDIA-VIVA loan agreement with a maximum ceiling of US $400 million and an interest rate of 1 per cent above the global bond interest rate.
MDIA is primarily engaged in content provisioning, focusing on family, children and entertainment, operating through subsidiary Cakrawala Andalas Televisi.
Cakrawala Andalas Televisi runs and manages a local free-to- air (FTA) television channel operated under the name ANTV. The programs that ANTV broadcasts include reality shows, variety shows, comedies, animations, movies and documentaries, most of which are in-house productions.
VIVA will use its subsidiary’s loan to repay principal and interest on debt incurred by CAT (Cakrawala Andalas Televisi) and LM (Lativi Mediakarya) amounting to US$78.37 million and US$ 52 million, or US$ 52 million in total; 130.45 million will consequently be recorded as VIVA debt to MDIA.
The company has signed a CAT-VIVA Loan Agreement of US$ 121.52 million at 1 per cent interest. Currently, its debt position has reached US$ 124.12 million, while debt to VIVA to LM amounts to US$ 52.08 million, at the same rate of interest.