The redemption, which will take place on June 12, covers the outstanding principal together with the interest accrued up to and including that date. It will be financed by bridging loans and internal cash generation.
The early redemption will help reduce the company's financing costs, explains Erwan Teguh Teh, an analyst at PT Danareksa Sekuritas. He points out that the bridging loan is at SIBOR plus 1.5%.
It offers cheaper new funding and less restrictions on the new covenants, explains Laksono...
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