JAKARTA (TheInsiderStories) – A telco support services company, PT Tower Bersama Infrastructure Tbk (IDX: TBIG) prepared a local bond offering up to R970 billion (US$67.36 million) in this month for debt refinancing, said the management yesterday. The notes are offered with an interest rate of 5.50 percent per annum and a tenure 370 days.
The public offering period will take place on April 1, 5 and 6 and listing on the Indonesia Stock Exchange on April 12. The underwriters for the bond issuance are PT CIMB Niaga Sekuritas, PT DBS Vickers Sekuritas Indonesia, and PT Indo Premier Sekuritas.
Later, Tower Bersama will distribute the proceeds to its subsidiary, PT Solu Sindo Kreasi Pratama to pay part of part of loan facility agreement with total amount $375 million which was obtained on June 28, 2019. The debt will be paid to creditors through UOB Ltd, which acts as the agent.
In this month, said the hief financial officer, Helmy Yusman Santoso, the provider also will execute the acquisition of 3,000 telecommunication towers belonging to PT Inti Bangun Sejahtera Tbk (IDX: IBST) worth Rp3.97 trillion in this month. With the acquisition, total towers managed by the provider will increase to 19,215 units.
At the shareholders meeting held on Tuesday (03/30), they also approved the distribution of cash dividends from retained earnings of 2019 with total amount around Rp692 million or Rp32 a share. As planned, Tower Bersama will distribute the cash dividend on April 29 and the cum dividend is scheduled on April 8.
In this year, the company prepared a total capital expenditure Rp5.5 trillion to adds 3,000 leases, consisting of new towers and collocations. The company has entered a master agreement with PT Hutchinson Tri Indonesia to automatically renew expiring lease contracts until 2022 to mitigate consolidation risks in the industry.
Consequently, Tower Bersama’ rental rate will face some pressures until 2022 although its tenancy growth and strong non-tower business revenue growth could cover for lower rental rate risks. On the other hand, the operator sits on Rp26.3 trillion revenue, equivalent to five years of projected revenue. Both tower providers are now consistently returning cash to shareholders.
Currently 34.23 percent share of the company owned by PT Wahana Anugerah Sejahtera, 22.23 percent hold by PT Provident Capital Indonesia, 39.01 percent by public, and 4.53 percent as a treasury shares.
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