Bumi Armada gets extension of US$260m debt's maturity date

Bumi Armada gets extension of US$260m debt's maturity date
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KUALA LUMPUR (Feb 24): Bumi Armada Bhd has secured an extension of the final maturity date for Tranche 1, consisting of US$260 million (RM1.05 billion), under term loan facilities worth US$660 million (RM2.67 billion).

The offshore energy facilities and services provider said the facility agreement signed on April 24, 2019, had been amended to extend the final maturity date for the tranche to Nov 23, 2022.

The final maturity date for Tranche 2 (US$400 million or about RM1.62 billion) remains unchanged at May 23, 2024.

“The revision takes into consideration the impact of the Covid-19 pandemic and the resulting significant slowdown in global business activities, which have in turn impacted the progress of Bumi Armada’s monetisation initiatives.

“Notwithstanding the above and barring unforeseen circumstances, Bumi Armada expects continued stable operations for its floating production and operation business,” it said in a filing with Bursa Malaysia. 

The company said the offshore marine service segment was expected to remain soft with relatively subdued industry activity. 

“Bumi Armada has Covid-19 mitigation measures in place and will continuously monitor the situation to ensure the ongoing safety of its employees and assets,” it added.