XL raise IDR2.8 trillion from rights issue

PT Excelcomindo Pratama Tbk, one of the leading cellular operators in Indonesia, today announced that it has completed its IDR 2.8 trillion rights issue. The number of new shares issued after the completion of rights issue is 1.418 billion, bringing to total number of outstanding shares to 8.508 billion. The proceeds will be fully used to repay debt.

Total gross proceeds from the rights issue is IDR 2.8 trillion. After deducting with issuance costs, the net proceeds will be used to pay XL’s loans as follows : Syndicated Loan Agreement with DBS Bank Ltd., Export Development Canada, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Chinatrust Commercial Bank, Ltd. amounted US$ 140 million (IDR 1.3 trillion).

Others, Billateral Loan Agreement with PT Bank Mandiri (Persero) Tbk. amounted IDR 400 billion, Billateral Loan Agreement with PT Bank Mizuho Indonesia amounted US$ 50 million (IDR 474 billion), Billateral Loan Agreement with DBS Bank Ltd. amounted US$ 50 million (IDR 474 billion), Export Credit Facility Agreement with Exportkreditnämnden (EKN) Buyer Credit Facility which is funded by Swedish Export Credit Corporation amounted US$ 11.7 million (IDR 111 billion).
Prior to the completion of this right issue, in Q4 2009, XL has prepaid US$ 100 million bank loans (HSBC amounted USD 50 million and SCB amounted USD 50 million) and redeemed US$ 64.6 million bonds (after the redemption the remaining outstanding Bonds is US$ 59.4 million). The total debt prepayment of USD 164.6 million was funded by internal cash flow. The completion of the rights issue and pre payment of loans and US$ bonds will reduce XL’s financing costs, improve its capital structure and strengthen its balance sheet.