JAKARTA (Rambu Energy) – PT Apexindo Pratama Duta, an Indonesian oil and gas drilling service provider, will issue bond worth US$200 million through its wholly-owned overseas subsidiary Ocean Peak Holding B.V. The bonds’ coupon rate was set at a maximum of 12 per annum with maximum enor of 5 years.
The company said in a filing to the Indonesian Stock Exchange that the proceeds of the bonds will be used by its subsidiary Ocean Peak Drilling B.V. to purchase rigs to support the company’s business activities as will as to fund debt service and liquidity accounts.
Apexindo said under the proposed scheme, US$185 million of the bonds proceeds will be injected by Ocean Peak Holding to Ocean Peak Drilling B.V, as equity. In return, Ocean peak Drilling will use the funds to buy rigs.
It added US$10 million of the bond proceeds will be earmarked for debt service account and US$5 million for liquidity account.
The bonds are guaranteed by the company and subsidiaries with maximum guaranteed value of US$230 million. The coupon is payable in every six months.
Apexindo is 82.4106 percent owned by PT Aserra Capital, public 17.5853 percent and Erwin Sutanto 0.0009 percent.
Apexindo Pratama is an Indonesia’s largest onshore and offshore drilling operator that has been serving both local and international companies, domestically as well as abroad for more than two decades.
At presn, Apexindo operates eight onshore rigs and six offshore rigs. Off the offshore rigs, two are jack up rig and four submersible swampbarge and one Floating Production Storage Offloading (FPSO).
The company leases its rigs including its workers to oil and gas companies, such as Total E&P Indonesie, Chevron and VICO Indonesia.
The bonds issue is a material transaction since the bond value is equal to 70.79 percent of the company’s equity.
The bond issuance has been approved by its shareholders at its extraordinary shareholders meeting on Thursday (Sept 18).