Energi Mega Persada Reduces Interest Cost by US$6.3 Million in Year 2016

Jakarta, 5 January 2016

On the 31st of December 2015, PT Energi Mega Persada Tbk. (“EMP” or “the Company”), through its subsidiaries, EMP Bentu Limited, has signed a US$60 million loan facility agreement with Intesa Sanpaolo SpA & the Britannic Strategies Limited. The loan facility has a five years tenor and interest rate of LIBOR + 6.8% p.a. EMP and PT Tunas Harapan Perkasa (EMP’s subsidiary) act as the Guarantors in this agreement.

The new loan facility is subject to a few conditions precedent to be completed. The loan facility will be used to settle the maturing US$53 million loan from the Pro Strategic which bears 20% interest rate per annum. Such loan refinancing would reduce EMP’s interest cost quite significantly.

“The loan refinancing can save interest cost of up to US$6.3 million in year 2016. This cost saving will have positive impact on EMP’s future financial results”, said the CEO of EMP, Mr. Imam Agustino in Jakarta.

Mr. Didit Ratam, EMP’s Director, added, “In the past 24 months, we have been able reduce our outstanding loan by over US$300 million. In addition, we have successfully refinanced a few loans with the new ones at lower rates. Consequently, EMP is expected to show better liquidity ratios going forward.”

Creditor Loan Size Loan Size Loan Size Rate Maturity/

Tenor

(Dec 2013) (Dec 2014) (Sep 2015)
 

Short Term Loans

Pro Strategic Investor Ltd. *

$102,019,154 $74,759,345 $53,040,584 20% Dec-2015
PST Finance Ltd. $61,950,000 $67,150,715 $62,556,748 LIBOR + 20% Dec-2015
Long Term Loans
Syndicated loan arranged by BAML

(ONWJ project)

$203,000,000 $152,490,730 $132,762,878 LIBOR + 6% Sep-2016
Capex carry loan from Mitsubishi & Japex (Kangean project) $339,984,658 $193,148,794 $154,667,256 LIBOR + 4.25% Jun-2017
Total $706,953,812 $487,549,584 $403,027,466
Creditor Loan Size Rate Maturity/Tenor
Intesa Sanpaolo SpA & Britannic Strategies Limited * $60 Mn LIBOR +6.8% Dec-2020

* Intesa Sanpaolo SpA & Britannic Strategies Limited loan facility (LIBOR + 6.8%) is used to settle Pro Strategic loan (20%)

Press Release -Energi Mega Persada Reduces Interest Cost by US$6.3 Million in Year 2016

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For any questions relating to this release, please contact Herwin W. Hidayat (Investor Relations) at +6221-2994 1500. Other related Company information can be found at www.energi-mp.com

 

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