JAKARTA (TheInsideStories) – PT Tower Bersama Infrastructure Tbk (IDX: TBIG), a telecommunications tower company owned by Saratoga Group, to issues global bond of US$300 million with an interest rate of 2.75 percent and will be mature in 2026. The management said, most of the proceeds will be used to pay the debt.
Chief financial officer of the company, Helmy Yusman Santoso, said on Friday (01/15), the global bond offering will close on Jan. 20 and will be listed on the Singapore Stock Exchange. He conveyed, the issuer have an obligation to refinances its revolving loan facility worth of $375 million.
After the issuance of the notes, total gross loans of the company and its units will become $505.4 million, include lease liabilities, usage right assets, 2017 loans, 2018 loans, and 2019 loans. The international rating agency, Fitch, has gave a BBB- rating to Tower Bersama‘ latest global bond.
The agency assessed that the provider has sufficient funding space to complete the acquisition planned of 3,000 towers belonging to PT Inti Bangun Sejahtera Tbk (IDX: IBST) with total values of Rp3.97 trillion. This transaction is expected to be completed near the end of the first quarter of 2021.
Fitch estimates that the ratio of funds from operations to Tower Bersama‘ net debt will remain five times in 2020 and 2021. The company’ acquisition strategy is estimated to increase revenue of $41 million and EBITDA of $34 million per year. The tower portfolios will also increases to 19,215 towers.
Going forward, the agency estimated that the telecommunications tower industry will mutually consolidate and be led by several big players, one of which is Tower Bersama. As reported, the unit of tower company plans to acquires 3,000 towers from Inti Bangun.
In September, Tower Bersama had issue local bonds Rp700 billion ($50 million). These bonds are part of an ongoing public offering with a total target fund of Rp7 trillion and has received an AA- rating from the Fitch. The bond have two series with a one and three years tenure.
All of the proceeds used to repay part of a portion of the existing debt of its unit, PT Solu Sindo Kreasi Pratama, worth of Rp700 billion. The bond have a fixed interest rate of 8.4 percent per year and will mature on Sept. 19.
Santoso optimistic that it can print double-digit growth in revenues, EBITDA and net profit next year. In the first nine month, Tower Bersama posted a net profit of Rp747.47 billion, up 22.14 percent from the same period last year amounting to Rp611.96 billion. The revenues also rose 13.54 percent to Rp3.94 trillion compared to last year of Rp3.47 trillion.
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