PT Pan Brothers Tbk is seeking a one-year extension of its $138.5 million revolving credit facility (RCF) which matures on Feb. 1, 2021, and the option to further extend that by another year, said two sources familiar with the matter.
As reported, bank lenders want to know the company’s plans for its due 2022 notes before committing to a three-year refinancing of the RCF which was previously under negotiation, even though
the company has said that a refinancing solution for the due 2022 notes is not a precondition to carrying out a successful refinancing of the revolver.
Pan Brothers’ $171.1 million 7.625% due 2022 were indicated at 71/71.50 today, two separate sellside sources said, unchanged from yesterday. Meanwhile, BAML has scheduled a non-deal roadshow for Pan Brothers’ bondholders on Dec. 4, the sellside sources said. The call will be helmed by vice president and significant shareholder of Pan Brothers, Anne Patricia Sutanto, as well as director, Fitri Ratnasari Hartono.
The company has appointed financial advisory firm AJCapital Advisory Pte Ltd. and the Indonesian arm of law firm Baker McKenzie, Hadiputranto, Hadinoto & Partners (HHP Law Firm), to draw up financial projections and negotiate a term sheet with lenders, one of the sources said, with the other stating that the appointments were not in the capacity of restructuring advisors.
As previously reported, Pan Brothers is mulling an equity injection through a rights issue or a private placement of shares to bridge near-term funding gaps. Any prospective equity financing is likely to be part of the company’s solution to address the impending maturity of the due 2022 notes, as reported.
Pan Brothers said in an emailed response to Reorg: “The company is solving the [refinancing] with the 12 banks under consensual basis, and we are concluding this within [a] timely manner and therefore we are engaging counsel and advisor.”
The company did not comment on the one-year extension request in its emailed response.
AJCapital declined to comment. Baker McKenzie did not respond to an emailed request for comment.
Regarding the refinancing of the RCF, during an Oct. 28 investor call, Sutanto and Hartono had stated that, one of its existing lenders was willing to increase its refinancing participation size by around 20% and the company would be able to raise $100 million “at a minimum”.
Company management had further stated that it would be able to use its cash on hand to bridge any refinancing shortfall and because it is prioritising the preservation of liquidity, it does not intend to repurchase its due 2022 notes.
As reported, original allocations of the 2017 syndicated loan are as follows.
MLABs |
Allocations |
ANZ |
$14 million |
HSBC Indonesia |
$14 million |
ING Bank Singapore |
$14 million |
Lead arrangers |
|
China Construction Bank Indonesia |
$12 million |
Bank Mizuho Indonesia |
$8.5 million |
Maybank Indonesia |
$4.5 million |
Maybank Singapore |
$4 million |
Bank KEB Hana Indonesia |
$8.5 million |
Arrangers |
|
MUFG Bank Jakarta |
$8 million |
Bank Rakyat Indonesia, Singapore Branch |
$8 million |
BNP Paribas Indonesia |
$7.5 million |
Citi Indonesia |
$7 million |
Total |
$110 million |
Pan Brothers’ capital structure is below:
-- Junguang Tan, Nidhi Pandurangi