Berlian Laju Secures US$685 Million Loan - The Indonesia Today

PT Berlian Laju Tanker Tbk has secured commitments from six (6) leading commercial banks, DnB NOR Bank ASA, Singapore Branch, Nordea Bank Finland Plc, Singapore Branch, Standard Chartered Bank, ING Bank N.V., Singapore Branch, NIBC Bank Ltd., BNP Paribas, Singapore Branch (“BNP”) on 18 February 2011 to provide USD685 million in a new landmark term facility.
The Facility is for a total amount of USD685 million secured by 40 of its existing ships and 3 of BLT ships under construction with a maturity of 5 years and a repayment profile of 10 years.

The Facility also has a debt service coverage covenant which is not only based on cash flows but also based on liquidity amount, allowing the Company enhanced flexibility.
The proceeds from the Facility will be used to prepay 10 of its existing loan facilities with an outstanding amount of USD593 million and to fund all of our remaining payments due on the 3 ships under construction out of the 4 new ships to be delivered in 2011 with the remainder increasing our liquidity.

"The Facility will not only reduce our principal instalments in the first year by 67% but cumulatively will reduce the Company’s debt installments by USD166.9 million over the next 3 years, thereby significantly increasing its liquidity as well as increasing the Company’s debt service coverage ratio significantly. At the same time, the increased flexibility on the debt service covenant will also help assure continued compliance with all of the financial covenants of the Facility. In addition, the Facility will fund 81% of all of the Company’s capital requirements for its newbuildings in 2011," BLT said this morning.